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USD/JPY jumps to fresh highs above 120.40

FXStreet (Mumbai) - USD/JPY regained strength and rallied to fresh session highs in the Asian trading, largely on the back of a strong pull back seen in the US dollar across the board.

USD/JPY capped by 20-DMA

Currently, the USD/JPY trades at fresh session highs at 120.45 levels, recording a 0.27% gain on the day, moving away from fresh three week lows reached at 119.34 in the previous session. The strength in USD/JPY was mainly driven by a major rebound in the greenback against its major counterparts as the US dollar sell-off was seemingly overdone.

The USD/JPY pair slumped to fresh three week lows in reaction to the FOMC statement released, which dropped the word ‘patient’. However, policymakers tried to cool expectations of an imminent rate hike this year, by emphasizing that the path for interest rates is still very much data dependent, which pushed the treasury yields lower and hence dragging down the US dollar across the board.

USD/JPY Technical Levels

To the upside, the next resistance is located at 120.49 (20-DMA) levels and above which it could extend gains 121 levels. To the downside immediate support might be located at 120 levels, below that at 119.69 (Today’s Low) levels.

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