USD/JPY drops to 119.80

FXStreet (Edinburgh) - The greenback is losing the grip vs. the Japanese yen on Monday, dragging USD/JPY to session lows around 119.80.

USD/JPY down from 120.20

The pair keeps correcting lower after reaching intraday peaks around 120.20 in early trade amidst an increasing selling tone in the greenback. Ahead in the session US Existing Home Sales and the speech by Fed’s Williams are due next, followed by Japan’s flash PMI tracked by Nomura/JMMA for the month of March.

In her earlier speech, FOMC member Loretta Mester said the Fed’s measures should lift inflation to the 2% target and promote economic growth. She added that the Committee wants to approach a normalization of the monetary policy via interest rates and that risks of bubbles as a consequence of policy remain at minimum levels.

USD/JPY levels to watch

The pair is now retreating 0.15% at 119.84 with the immediate support at 119.75 (low Mar.23) ahead of 119.68 (low Mar.19) and then 119.29 (low Mar.18). On the flip side, a breakout of 120.48 (Tenkan Sen) would target 121.20 (high Mar.20) en route to 121.41 (high Mar.17).

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