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USD/JPY sold-off at 20-DMA, drops in tandem with Nikkei

FXStreet (Mumbai) - A renewed bout of risk-aversion hit the Asian markets and boosted the demand for yen, triggering a minor sell-off in the USD/JPY from 20-DMA placed at 122.85 levels.

USD/JPY wipes-out gains

Currently, the USD/JPY pair trades almost unchanged at 122.58, fading a spike to 122.85 highs. The USD/JPY’s recovery from near 122.30 region met fresh supply at the hourly 20-DMA and the price reverted to the mid-point of the 122 handle during mid-Asia.

Heavy selling witnessed in the Japanese stocks lifted safe-haven bids for the yen and knocked-off the major from higher levels. Japan’s benchmark index, the Nikkei sinks over 2% to trade below 19,500 levels. However, the downside remains cushioned on the back of a broadly higher greenback amid expectations of stronger US payrolls data due later in the day ahead.

Looking ahead, attention remains on the US NFP report, which is expected to print 201k in Nov against a stellar 271k numbers booked previously.

USD/JPY Technical levels to watch

The prices retreat and find the immediate support placed at 122.27 (Dec 3 Low) below which 121.81 (200-DMA) would be tested. To the topside, the immediate resistance is located at 122.84/87 (1h 200-SMA/ 20-DMA). A break above the last, the major could test 123/123.04 (round number/ 1h 20-SMA).

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