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USD/JPY reversing the corrective slide from hourly 100-SMA

FXStreet (Mumbai) - The USD/JPY pair attempts a minor recovery in mid-Asian trades, halting the overnight corrective-slide at hourly 100-SMA, amid low volumes and no fresh economic news as Japan and US markets remain closed today.

USD/JPY supported at hourly 100-SMA

Currently, the USD/JPY pair trades almost unchanged at 120.22, recovering from session lows struck at 120.09 in early moves. The USD/JPY pair extends its recovery mode on the 120 handle this session, after bottoming out near 119.65-70 region last week, as the Japanese yen continues to lose ground on the back of risk-on sentiment and on increased speculations of further BOJ easing at the end of this month.

However, the pair continues to trade in tight trading ranges between 118.60 and 121.35 as witnessed over the past one month as the US dollar weakness on the back of fading Fed rate-hike bets this year, keeps the upside restricted.

In the week ahead, inflation figures from the US and China may heavily impact the major while a lot of Fed speaks will also provide fresh momentum on the USD moves.

USD/JPY Technical levels to consider

To the upside, the next resistance is located at 120.25/31 (daily R1 & R2) beyond which 120.56/60 (Oct 5 Highs & 50-DMA) could be tested. Above the last, the pair could climb further towards 121/121.02 (round number & Sept 17 High). To the downside immediate support might be located at 120.04/05 (Hourly 50 & 200-SMA), below which 119.22-21 (Sept 29 & 24 Lows) could be exposed. A breach of the last, the pair could drop to 118.83 (Sept 8 Low) levels.

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