USD/JPY briefly drops below 121.00 as investors await FOMC minutes

FXStreet (Córdoba) - The dollar has continued to weaken against the Japanese yen and briefly dropped below the 121 mark as the yen benefitted from the risk-off environment and investors await the FOMC minutes release.

USD/JPY accelerated losses and fell to a low of 120.98, although it quickly regained the 121.00 level. At time of writing, the pair is trading at 121.11, recording a 1.13% loss on the day.

Later during the New York session, the Fed will publish minutes of its last meeting where investors will be looking for signs about the timing of the lift-off. Last week’s disappointing nonfarm payrolls tempered expectations of a rate hike later this year.

USD/JPY levels to watch

In terms of technical levels, immediate supports are seen at 120.98 (Jul 8 low), 120.84 (May 21 low) and 120.57 (May 20 low). On the other hand, resistances could be found at 122.25 (50-day SMA), 122.56 (Jul 8 high) and 122.87 (Jul 7 high).

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