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USD/JPY extends the recovery, focus on 120.00

FXStreet (Edinburgh) - After bottoming out near 119.20 in early trade, USD/JPY has managed to stage a rebound and is now regaining the 119.85/90 band.

USD/JPY firmer on USD-buying

The now better tone around the greenback is helping spot to retake previous levels and trade closer to the psychological mark at 120.00 today. US Treasuries are also on their way to revert the initial negative tone, adding further support to USD.

Ahead in the day, US Consumer Confidence, Trade Balance and the S&P/Case-Shiller index are due, while Retail Trade and Industrial Production figures will be published in Japan.

USD/JPY levels to watch

As of writing the pair is up 0.03% at 119.97 with the next resistance at at 120.72 (high Sep.16) ahead of 120.99 (high Sep.17) and finally 121.335 (high Sep.10). On the other hand, a break below 119.24 (low Sep.29) would aim for 118.87 (low Sep.8) and then 118.58 (low Sep.4).

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