USD/JPY sidelined near lows at 118.63

FXStreet (Mumbai) - USD/JPY fell further to fresh lows in the mid-Asian trading, bouncing-off two week highs in the previous session as the US dollar extends its descent after Yellen’s ‘patient’ guidance failed to fuel a USD rally.

USD/JPY capped by 5-DMA

Currently, the USD/JPY trades lower by -0.23% 118.68 levels, having posted fresh session lows at 118.63 some minutes ago. The pair edged lower after the US dollar lost its ground against its major counterparts, while traders continue to digest Fed Chair Yellen's testimony in Capitol Hill. Fed Chair Janet Yellen reiterated the word "patient" and also said the Fed will change its forward guidance before rising interest rates, which fizzled out the previous rally in the USD/JPY pair.

Meanwhile, traders now await Yellen’s testimony before the House Financial Services Committee and US home sales data due later today for further US dollar moves.

USD/JPY Technical Levels

To the upside, the next resistance is located at 118.92 (5-DMA) levels and above which it could extend gains 119.19 (Feb 19 High) levels. To the downside immediate support might be located at 118.53 (50-DMA) levels, below that at 118.23 (100-DMA) levels.

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