USD/JPY recovers to 119.60

FXStreet (Mumbai) - USD/JPY remains heavily offered in Asia, bouncing-off 120 handle, largely on the back of increased safe-haven bids for the Japanese yen amid Iran talks and on a broadly weaker US dollar.

USD/JPY trades below 50-DMA

Currently, the USD/JPY trades lower by -0.46% at 119.60 levels, having posted day’s high at 120 and day’s low at 119.42. USD/JPY fell deep in to red mainly driven by broad based US dollar sell-off on profit-taking after the recent strength seen in previous session on favourable US consumer confidence data.

The pair accelerated losses as impending talks between Iran and its six global powers over Iran’s nuclear deal program fuelled risk-off moods which boosted the demand for yen as a safe-haven asset.

Meanwhile, traders ignored below estimates Japanese manufacturing gauge which showed that the Tankan Manufacturing index of large-scale factories was unchanged at 12 in the March quarter, against expectations for the index to rise two points to 14 last quarter.

USD/JPY Technical Levels

To the upside, the next resistance is located at 120 (Today’s High) levels and above which it could extend gains 120.33 (20-DMA) levels. To the downside immediate support might be located at 119.23 (100-DMA), below that at 119 levels.