USD/JPY testing lows below 119.60

FXStreet (Mumbai) - The US dollar erased previous gains and fell back in to red against the yen in the Asian session, resuming its downward correction trend post FOMC, largely as the US dollar corrects gains seen in the US last session.

USD/JPY capped by 5-DMA

Currently, the USD/JPY pair trades lower by -0.10% near fresh session lows of 119.59 levels, having previously posted day’s high at 119.82 levels. USD/JPY turned slightly lower near lows this morning as the US dollar lost ground against its major peers after markets seem to locking-in gains following solid inflation, manufacturing data and existing home sales which boosted the greenback.

The US dollar index which measures the relative strength of the greenback against a basket of six major currencies fell by -0.12% at 97.31 levels.

Moreover, USD/JPY came under pressure as weaker 2-year treasury yields standing at 0.587%, down -1.41% on the day, also dragged the greenback lower.

Meanwhile, traders now switch their attention on the crucial US consumer durables data later today which may provide fresh cues on USD/JPY.

USD/JPY Technical Levels

To the upside, the next resistance is located at 119.82 (Today’s High) levels and above which it could extend gains 120 levels. To the downside immediate support might be located at 119.44 (50-DMA) levels, below that at 119.24 (100-DMA) levels.

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