FXStreet (Mumbai) - The USD/JPY pair came under renewed selling pressure in mid-Asia, as the yen extended its corrective rally after booking heavy losses in the previous session.
USD/JPY heads towards Tuesday’s low near 123.20
Currently, the USD/JPY pair trades -0.11% at fresh session lows of 123.28, dropping gradually after having faced rejection near 123.50 levels. The demand for the Japanese yen against its American counterpart picked-up after the news of ‘heavy gunfire' in northern suburbs of Paris hit the wires last hours.
Investors flocked to the safe-haven - the yen after worries resurfaced over Paris attacks after media reported shooting during police operation on northern part of Paris.
Moreover, the major is seen correcting heavy gains booked yesterday after the upbeat US CPI report, as markets gear up for the key FOMC and BOJ events. While the renewed optimism witnessed on the Asian stocks also failed to curb the demand for the Japanese currency.
Later in the day, the sentiment on the European stocks and the US housing data will be closely tracked for further momentum on the pair.
USD/JPY Technical levels to watch
The prices trade firmer above 123 handle and now faces immediate resistance at 123.49/50 (Nov 17 High/ psychological levels). A break above the last, the major could test 123.61 (Nov 9 High). To the downside, the immediate support in sight at 123 (daily pivot/ 5 &10-DMA) below which 122.73 (Nov 11 Low) would be tested. A break below the last, 122.20 (Nov 16 Low) comes into the picture.
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