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USD/JPY back below 119

FXStreet (Mumbai) - The US dollar returned to the negative terrain versus the Japanese counterpart, driving USD/JPY back below 119 barriers, largely as the US dollar halted its rebound seen in Asia and turned in red as traders await fresh incentives in the day ahead.

USD/JPY drops from 119.08

Currently, the USD/JPY pair trades muted at 118.95, falling back in to the red zone. The USD/JPY erased previous gains and trades flat as the US dollar stalled its recovery and resumed its downslide following the recent tepid US macro data.

The US dollar index which measures the relative strength of the greenback against a basket of six major currencies turns negative and now trades at 97.03, retreating from session highs at 97.22.

Meanwhile, markets now turn their focus towards Wednesday’s FOMC statement as the EUR and NA Calendar remains relatively light at the start of the week.

USD/JPY Technical Levels

To the upside, the next resistance is located at 119.45 (April 20 High) levels and above which it could extend gains 120.76 (April 15 High) levels. To the downside immediate support might be located at 118.51 (April 20 Low) below that at 118.30 (March 26 Low) levels.

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