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USD/JPY attempts another bounce to 121

FXStreet (Mumbai) - USD/JPY is seen picking-up significant pace heading towards the US open and hover around fresh session highs reached within a shouting distance of 121 handle.

USD/JPY clings to daily pivot

Currently, the USD/JPY pair drops -0.12% to 120.94, retesting fresh session highs posted at 120.97 last minutes. Fresh bids finally emerged near the hourly 100-SMA, fuelling a sudden spike in USD/JPY towards 121 barrier.

The major extends its recovery mode back towards post-FOMC levels, completely ignoring the broad based US dollar weakness, as markets resorted to repositioning ahead of the US GDP report due later today and the BOJ – main risk event due tomorrow.

Meanwhile, the yen appears to lose ground somewhat as BOJ closes-in, with markets widely anticipating BOJ rolling out further easing tomorrow, lock stepping in with most major global central bankers, viz., the ECB, PBOC, RBNZ, etc.

USD/JPY Technical levels to watch

The prices are seen testing the 121 handle above which the pair would climb further towards 121.28 (Oct 28 High) and from there to 121.43 (200-DMA). To the downside, the immediate support in sight is located at 120.77 (1h 100-SMA), below which 120.33 (1h 200-SMA) would be tested.

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