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USD/JPY: Yen better bid amid European stocks rally

FXStreet (Mumbai) - The USD/JPY pair continues to trade in a slim range since European open, with the JPY bulls fight hard to retain control amid persisting risk-on sentiment.

USD/JPY rises from hourly 100-SMA

Currently, the USD/JPY pair trades -0.05% lower at 119.38, finding good support at 119.22 session lows, where the hourly 100-SMA coincides. The Japanese currency remains supported versus the US dollar this session after Japan’s Chief Cabinet Secretary Yoshihide Suga recently noted that the government is not planning for further stimulus now.

While the upbeat BOJ quarterly Sakura report, which showed that the central bank upgraded its assessment of the nation’s nine regional economies, also continues to underpin the yen.

However, the downside in the USD/JPY pair remains capped as the risk-on rally in the European indices, having shrugged-off the Chinese GDP print, offers support to the bulls.

Looking ahead, the dollar-yen pair will continue take cues from a set of speeches from Fed officers’ amid a data-thin trading session today.

USD/JPY Technical levels to consider

The pair holds remains supported above 119 handle eyeing the next resistance located at 119.55/58 (daily R2 & highs) beyond which 119.83 (20-DMA) could be tested. Above the last, the pair could climb further towards 120 barrier. While to the downside immediate support might be located at 119.14/17 (daily lows & 5-DMA), below which 118.80 (Oct 16 Low) could be exposed. A breach of the last, the pair could drop to 118.65/62 (Sept 7 & Oct 14 Lows).

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