USD/JPY jumps back above 120 handle

FXStreet (Mumbai) - The US dollar resumed its upward trajectory against the Japanese yen in the New Year and trades elevated well above 120 mark on contrasting monetary policy outlooks between Japan and the US.

Currently, the USD/JPY pair trades now at 120.39 levels, up 0.52% on the day, bouncing off from day’s low of 119.84 levels hit in the early Asian session. The Japanese yen is expected to weaken against the US as divergence in monetary policy outlooks between the two nations is likely to keep the Japanese currency lower. The Bank of Japan (BOJ) is expected to continue its easing cycle, whereas US Federal Reserve (Fed) is expected to raise interest rate by mid-2015.

USD/JPY Technical Levels

To the upside, the next resistance is located at 120.71 (Dec 30 High) levels and above which it could extend gains 121 levels. To the downside immediate support might be located at 119.98 (Dec 23 Low) levels, below that at 119.22 (Dec 31 Low) levels.