USD/JPY capped below 120.50, lacks momentum

FXStreet (Mumbai) – The USD/JPY pair maintains the offered tone as we progress towards the European morning, with bears defending the 120.50 barrier.

USD/JPY hovers around 5-DMA

Currently, the USD/JPY pair trades -0.10% lower at 120.40, languishes near lows struck at 120.38 last hours. The major extends its range-trade into fifth today, finding good support near 120.20 region, as a lack of fresh fundamental triggers and holiday-thinned markets fail to provide any incentive to the prices.

Moreover, the ongoing weakness in oil and lower global equities continue to favour the safe-haven bids for the yen while uncertainty surrounding Fed’s and BOJ’s monetary policy outlook for next year also adds to persisting irregular volatility witnessed in the final week of 2015.

Meanwhile, the traders hope that the upcoming US macro data may provide some fresh USD moves, although Wednesday’s poor pending home sales from the US had virtually no impact on the buck.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 120.61 (10-DMA). A break above the last, the major could test 121/121.04 (round number/ 20-DMA). While to the downside, the immediate support is located at 120.24 (Dec 29 Low) below which 120.02 (Dec 25 Low) would be tested.

The USD/JPY pair maintains the offered tone as we progress towards the European morning, with bears defending the 120.50 barrier.

(Market News Provided by FXstreet)