USD/JPY pares losses, retakes 120

By FXStreet FXStreet (Mumbai) – The Japanese yen seems to be losing ground versus the US dollar in the early moves, now lifting USD/JPY back near 120 handle, as markets gear up for the European open with the key event – Draghi’s testimony closely eyed.

Yen retreats from 119.64 highs

Currently, the USD/JPY pair trades -0.11% lower at 120.03, retreating from session lows of 119.64 struck in late-Asia. The major erased half its slide and extends the recovery this session as risk-off sentiment appears to have eased a bit, thus slightly favouring the USD bulls.

Markets now await the European opening bells for further incentives on the USD/JPY pair. Stocks on the European bourses are tipped off for a negative start tracking steel losses from their Asian counterparts. The pan-European Euro Stoxx 50 futures drop nearly 1% while the DAX futures remain deep in the red, down -0.85%.

Earlier in Asia, the Japanese yen bounced up against the US dollar after a weaker-than-expected Chinese manufacturing index reading boosted the demand for safe-haven assets.

Looking ahead, the pair is likely to remain pressured amid renewed bouts of risk-off trades as European traders digest the latest China PMI report.

USD/JPY Technical levels to consider

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Source:: FX Street