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USD/JPY cautious circa 119.50, US data in focus

FXStreet (Mumbai) - The US dollar trades around a flat line versus the yen, keeping USD/JPY in the same range near119.50 levels, largely on the back of rising treasury yields which boosted USD bulls while markets now turn their focus towards today’s US durable goods data for further direction.

USD/JPY awaits key US data

Currently, the USD/JPY pair trades flat at 119.53, revolving around the midpoint of 119 handle. The USD/JPY continues to tread water and recovered from lows as traders anticipate a rebound in the US durables goods orders after a drop previously which may provide impetus to the greenback.

The US dollar index which measures the relative strength of the greenback against a basket of six major currencies turns positive and now trades at 97.47, retreating from 96.93 lows.

Meanwhile, durable goods orders from the US are likely to attract traders as the key data may provide fresh take on dollar moves. A gain of 0.6% is expected for March durable goods orders, a recovery from the huge 1.4% fall posted in Feb, while they are forecast to rise 0.3% when measured excluding transport.

USD/JPY Technical Levels

To the upside, the next resistance is located at 120 (50-DMA) levels and above which it could extend gains 120.45 (April 7 High) levels. To the downside immediate support might be located at 119.14 (April 22 Low) below that at 118.77 (April 16 Low) levels.

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