USD/JPY retreats further from 2- month highs

By FXStreet FXStreet (Córdoba) – USD/JPY dropped further during the American session and felt o121.50, where it finally found support. Currently it trades at 121.60/65, marginally higher for the day.

Despite the retreated that is taking place during the American session the trend and momentum remains bullish.

The yen gained momentum in the market as stocks around the globe decline. In Europe main indexes finished in positive territory but far from the highs while in Wall Street the Dow Jones is losing 0.28% and the Nasdaq declines 0.57%. The Japanese currency is holding well despite rising US government bond yields; the 10-yr is back above 2.25%.

USD/JPY technical levels

To the downside the immediate support it the important 121.50 area that during the last two months worked as a key resistance. Below here the next potential support might lie at 121.35 (daily low), 120.85/90 and 120.40 (20-day MA). On the opposite direction, immediate resistance is seen at 122.00 and 122.45 (July 9, 18 low).
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Source:: FX Street