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USD/JPY attempts a bounce to 120.50

FXStreet (Mumbai) - USD/JPY erased previous losses and advanced to fresh session highs in the mid-Asian session, as weak Chinese data release added further to the yen weakness. While the US dollar continued to consolidate near three week highs levels.

USD/JPY supported above 5-DMA

Currently, the USD/JPY pair trades higher by 0.15% at fresh session highs at 120.43 levels, recovering its earlier slide to 120.10 lows. The USD/JPY pair edged higher largely on extended yen weakness especially after a big miss on Chinese trade numbers which dragged the Asian counterpart lower.

The yen remained weak against the greenback following non-event Bank of Japan’s (BOJ) minutes coupled with downbeat Japan core machinery orders. Japanese machinery orders, excluding ships and utility items, fell 0.4% month-on-month in February, adding to January's 1.7% decline in orders.

Meanwhile, the US dollar index hovers near session highs at 99.78 levels rising on the recent series of upbeat US macro data and FOMC minutes released last week.

USD/JPY Technical Levels

To the upside, the next resistance is located at 120.63 (April 10 High) levels and above which it could extend gains 121 levels. To the downside immediate support might be located at 120.10 (Today’s Low) below that at 199.89 (10-DMA) levels.

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