FxWirePro: USD/JPY retraces from fresh seven-year high, slips below 122 handle

Chart - Courtesy Trading View 

USD/JPY was trading 0.89% lower on the day at 121.24 at around 04:25 GMT.

The pair is retracing from fresh seven-year highs at 122.43 hit earlier on the day, slips below 122 handle.

Upbeat prints of Japan’s inflation data buoyed the yen and fuelled yields on the Japanese Government Bonds (JGBs).

USD/JPY witnessed a quick retracement as the yen rebounded on higher inflation data which spooked markets of BoJ action.

Higher Japan inflation data triggered the market’s fears that the Bank of Japan (BOJ) will intervene soon, which in turn weighed on the Japanese equities.

US Pending Home Sales for February will be in focus along with headlines from Ukraine which will be the key amid the European leaders' meet.

Major Support Levels: 

S1: 121.03 (5-DMA)

S2: 120

S3: 119.65 (200H MA)

Major Resistance Levels: 

R1: 122

R2: 122.47 (Upper BB)

R3: 123.67 (Dec 2016 high)

Summary: USD/JPY cools off from multi-year highs, bias remains bullish. Retrace below 200H MA will see more weakness.