USD/JPY retesting lows at 119.61

FXStreet (Mumbai) - USD/JPY shaved-off previous gains and fell further towards daily lows in the mid-European session, as the USD bulls took a backseat dragging the US dollar lower against its major counterparts.

USD/JPY falls from 120.85 levels

Currently, the USD/JPY trades low by -0.12% at 120.70 levels, retreating from previously posted day’s highs at 121.13 levels. USD/JPY gave back gains and edged lower on a broadly weaker US dollar as the US jobs data-led rally subsided. Moreover, risk-off trades resurfaced as Euro group meetings on Greece reforms takes the centre stage, boosting the demand for the yen as a safe haven asset.

However, the losses in USD/JPY may be capped at 5-DMA placed at 120.46 levels, where the pair finds a strong support.

In the week ahead, traders now focus on Japanese machine orders data and retail sales numbers from the US for further momentum on the pair.

USD/JPY Technical Levels

To the upside, the next resistance is located at 121.29 (March 6 High) levels and above which it could extend gains 121.86 (Dec 2014 High) levels. To the downside immediate support might be located at 120.46 (5-DMA) levels, below that at 120.10 (10-DMA) levels.

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