FXStreet (Mumbai) - The USD/JPY pair halted its recent run-up to 121.50 levels and retreated in Asia, having tested hourly 20-SMA, before attempting a minor recovery near 121.20, where it now wavers. USD/JPY back below 200-DMA Currently, the USD/JPY pair trades -0.25% lower at 121.17, recovering from a dip to 121.07 daily lows, where the hourly 20-SMA coincides. USD/JPY is seen correcting lower in Asia, after reaching seven-week highs at 121.50 on Friday last week. The bulls were boosted by the risk-on rally in global equities after the Chinese central bank cut its interest rates. In today’s trade so far, USD/JPY is unperturbed by the Asian equities cheering the PBOC rate cut news, and consolidates last week’s heavy gains. The Japanese stocks had a flying start and now jumps +1.21% to 19,052 while Australia’s S&P/ASX gains 0.30% to 5,367 points. Meanwhile, the focus for this week remains on the central banks’ events, including the key FOMC decision and the BOJ monetary policy statement. While new home sales data from the US in the day ahead will be watched for further USD moves. USD/JPY Technical levels to consider The pair is heading for a retest of 121.43/50 (200-DMA + Friday’s High), above which the pair would climb further towards 121.70/73 (100-DMA + Aug 28 High). While to the downside immediate support might be located at 121.07 (Today’s Low + hourly 20-SMA), below which 120.92 (5-DMA) would be tested. For more information, read our latest forex news.