USD/JPY bounces-off lows ahead of 119, risk-off at full steam

FXStreet (Mumbai) - USD/JPY ran through fresh offers near 119.30 region, pushing the major towards fresh lows just ahead of 119 handle, as the yen continues to garner strength on the back of increased safe-haven bids.

USD/JPY hits session lows at 119.06

Currently, the USD/JPY pair drops -0.70% to 119.17, quickly retracing from fresh weekly lows struck at 119.06 levels. The USD/JPY pair remains relentlessly sold-off this session as the JPY bulls retain complete control amid persisting risk-off environment as European stocks continue to bleed.

Moreover, the falling US treasury yields post-FOMC drags the US dollar lower across the board, which further adds to the negative sentiment around USD/JPY.

Meanwhile, markets are expected to keep mulling over the Fed verdict amid a data-quiet trading session on Friday.

The Fed left rates unchanged at its Thursday meeting, with the dot plot read much more dovish than at the June meeting.

USD/JPY Technical levels to consider

To the upside, the next resistance is located 120.03 (Aug 26 High) levels and above which it could extend 120.39 (Today’s High). To the downside immediate support might be located at 118.83 (Sept 8 Low) below that at 118.65 (Sept 7 Low).