FXStreet (Mumbai) - The USD/JPY pair once again failed at 120 barrier and pared gains in the mid-Asian trades, as the greenback was unresponsive to the improving risk-on moods amid rebounding Asian equities.
US employment data in focus
Currently, the USD/JPY pair trades 0.08% higher at 119.83, hovering close to session lows struck at 119.71 in early moves. The USD bulls struggle to benefit from the rebounding appetite for risky assets and hence unable to extend beyond hourly 200-MA located just ahead of 120 handle.
A strong pull-back in the Asian stocks, with Japan’s Nikkei rallying as much as 1.80%, Australia’s ASX advancing 1.40% and the Chinese Shanghai Composite index gaining 0.35% so far, was largely ignored by the USD/JPY pair.
While, dismal Japan’s retail sales data weighed on the yen somewhat, thereby supporting the USD/JPY.
Looking ahead, the major will be influenced by the broader market sentiment while the crucial US employment data along with the Chicago PMI report will also play a significant role.
USD/JPY Technical levels to consider
To the upside, the next resistance is located 120.64 (Sept 22 High) levels and above which it could extend 121.02 (Sept 17 High). To the downside immediate support might be located at 119.22 (Sept 29 Low) below that at 118.83 (Sept 8 Low) levels.
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