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USD/JPY heading towards key support at 122.20

FXStreet (Mumbai) - The rising threats to global security paired with heightening geopolitical risks kept the demand for safe-havens intact, thereby driving the Japanese yen to fresh one-week high on 122 handle.

USD/JPY fails near hourly 20-SMA and retreats

Currently, the USD/JPY pair drops -0.18 to 122.30, hovering close to fresh weekly lows posted at 122.26 in last hours. The Japanese currency continues to push higher versus its American rival, extending gains for the second straight session, as investors scramble for safety assets amid persisting risk-off markets on escalating geo-political risks surrounding the Middle-East after Turkey shot down a Russian jet on Air-space violation issues.

Further, the USD/JPY pair remains under pressure as the greenback extends its technical correction across the board while lower US treasury yields also add to the downside. The USD index loses -0.21% to 99.48, miring near session lows.

Amid lack of economic news this session, attention now shifts towards a host of key US macro releases due later today. The US durable goods data will kick-off a fuller US calendar followed by Core PCE index, personal spending, new home sales and finally revised consumer sentiment will wrap up the week. US markets remain closed tomorrow in observance of Thanksgiving Day.

USD/JPY Technical levels to watch

The prices trade near session lows and finds immediate support at 122.20 (Nov 16 Low) below which 121.70 (200-DMA) would be tested. To the topside, the immediate resistance is located at 122.47 (1h 20-SMA). A break above the last, the major could test 122.70 (5 & 20-DMA).

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