USD/JPY drops to lows near 120.35

FXStreet (Mumbai) - USD/JPY surrendered previous gains and edged lower in the European session, as the yen regained lost ground versus the greenback after Bank of Japan’s (BOJ) member Nakosa’s pro-JPY comments.

USD/JPY supported above 5-DMA

Currently, the USD/JPY pair trades lower by -0.17% at 120.38 levels, hovering close to fresh session lows posted at 120.33 some minutes ago. The USD/JPY pair dropped from 120.50 barrier after the yen was boosted following BOJ’s Nakosa comments stating that further monetary easing is not necessary unless there is no change in the underlying trend of inflation, adding that any cut in inflation forecast will not result in additional easing.

Moreover, the yen also strengthened this session despite rising US dollar across the board as traders also booked profits as the pair slipped below 120.50 levels. The US dollar index also moved away from session highs at 99.61 levels and retraced to 99.47, up 0.22% on the day.

USD/JPY Technical Levels

To the upside, the next resistance is located at 120.63 (Today’s High) levels and above which it could extend gains 121 levels. To the downside immediate support might be located at 120.18 (5-DMA) below that at 120 levels.