USD/JPY: Dipping below 120 handle

FXStreet (Guatemala) - USD/JPY is currently trading at 119.95 with a high of 120.20 and a low of 119.92.

Of late, a wider US-Japan yield gap had been helping lift USD/JPY over the key 120.00-level but it is now dipping lower and instead is holding some territory just below the 120 handle as we progress through the day. The major was dropping back from 120.06/18 recently, while the downside is being extended from the 120.30 area. 119.80 comes as the next support ahead of 119.40.

The main event holds the Nonfarm Payrolls in the US shift . "A stronger than expected non-farm payroll headline coupled with evidence of increased wage pressures would likely fuel renewed USD/JPY buying," explained analysts at the Bank of Tokyo-Mitsubishi UFJ, Ltd.

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