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USD/JPY struggles to extend gains beyond 120

FXStreet (Mumbai) - The USD/JPY pair remains on the bid in the early European trades, stalling its post-NFP recovery near 20-DMA, as the European traders hit their desks, digesting Friday’s US jobs data which triggered fresh selling wave in the US dollar.

Hovering around hourly 200-MA

Currently, the USD/JPY pair trades 0.07% higher at 119.98, unable to sustain above 120 handle. USD/JPY failed another attempt to extend beyond 120.10-120.15 region and receded to 120 barrier as the US dollar ran through fresh offers heading into the European opening bells.

Moreover, a better sentiment towards riskier assets such as equities also aided the post-NFP recovery seen in the major. Japan’s Nikkei is rallying over 1.54% at closing hours while Australia’s ASX finished nearly 2% higher.

Looking ahead, the major will be influenced by the USD moves as focus now shifts towards the US ISM non-manufacturing PMI and services PMI reports due later in the day.

While the BOJ monetary policy decision and the Fed minutes will remain the main highlights in the week ahead.

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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