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USD/JPY: Bulls take a breather, stalls recovery near 120.30

FXStreet (Mumbai) - The US dollar remains heavily bid versus its Japanese counterpart in the mid-European trades, now pushing USD/JPY towards the mid-point of the 120 handle.

US ADP data, Yellen’s speech eyed

Currently, the USD/JPY pair trades 0.45% higher at 120.28, testing daily highs at 120.32 levels. The major stages a solid come-back from fresh weekly lows reached at 119.22 on Tuesday and swung back above 120 handle as risk-on trades are back in vogue, boosted by solid performances on the Asian and European indices. At the moment, the pan-European benchmark, the Euro Stoxx 50 jumps nearly 2.50% while Germany’s DAX is rallying 2.40%.

In the day ahead, the major will be influenced by the crucial US employment data ahead of Fed Yellen’s speech. While tomorrow’s macro-calendar, offering China’s PMI, Japanese Tankan manufacturing gauge and the US ISM manufacturing PMI will be closely eyed for further momentum.

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 119.22 (Sept 29 Low) below that at 118.83 (Sept 8 Low) levels.

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