The USDJPY advanced on Wednesday and extended its momentum into Thursday’s Sydney session, but significant headwinds continue to threaten a bigger upside north of the 1.22 handle.
The USDJPY climbed 0.3 percent to 121.50, after trading within a range of 1.2087-1.2163 on Wednesday. The pair faced strong resistance at the upper end of that channel. The major resistance test is located at 121.81. A break above this level would expose 121.48. On the downside, initial support is located at 120.69.