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USD/JPY: Bulls fight back control, testing highs near 120.30

FXStreet (Mumbai) - The US dollar remains better bid versus its Japanese counterpart in the European session, as the USD bulls managed to regain control on improving risk sentiment.

USD/JPY extends beyond 120

Currently, the USD/JPY pair trades 0.11% higher at 120.28, staying within reach of the session highs posted at 120.32 some minutes ago. The major defends mild gains and strives for a test of 120.50 levels, as markets witnessed a major turnaround in the risk conditions after the European stocks rebounded higher, shrugging off weak Chinese data.

Meanwhile, the US dollar climbs higher against its major competitors with the re-emergence of risk-on market profile, benefitting the riskier currencies such as the buck. The USD index now trades 0.12% higher at 96.62 levels.

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.

USD/JPY Technical levels to consider

To the upside, the next resistance is located 120.64 (Sept 22 High) levels and above which it could extend 121.02 (Sept 17 High). To the downside immediate support might be located at 119.38 (Sept 15 Low) below that at 119.03 (Sept 18 Low) levels.

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