USD/JPY consolidates below 121

FXStreet (Mumbai) - USD/JPY keeps gains and remains below 121 barrier in the mid-European session largely as markets take a wait and see approach ahead of Fed minutes due later in the US session. While the US dollar is also seen consolidating gains after reaching fresh two week highs against its major peers earlier this session.

USD/JPY retreats from 121.10 highs

Currently, the USD/JPY pair trades higher by 0.13% at 120.85, having previously posted fresh two month highs at 121.10. USD/JPY trimmed gains as the US dollar erased partial gains across the board and trades lack lustre amid lack of fresh triggers in a data-dry European session.

Moreover, USD/JPY completely shrugged off better than forecasts Japanese GDP figures released in Asia as markets now await BOJ monetary policy decision due on Friday.

Meanwhile, all eyes are set on Fed’s minutes release due to be released today which may provide cues on US dollar moves. More hints on policy could also come from the two highest ranking officials, Vice-Chair Stanley Fisher who will speak on Thursday and Chair Janet Yellen who will speak on Friday.

USD/JPY Technical Levels

To the upside, the next resistance is located at 121 levels and above which it could extend gains 121.20 (March 20 High) levels. To the downside immediate support might be located at 120.60 (Today’s Low) below that at 120 levels.