FXStreet (Guatemala) - USD/JPY is currently trading at 121.71 with a high of 121.77 and a low of 120.56. USD/JPY is going against the downside from 123.00 and is up to challenge through the midpoint of the 121 handle and testing bears commitments here. The recovery started from 120.33 and has crossed up through the 20 DMA at 121.19 today reaching the aforementioned highs. Risk has started to recover while the dollar is starting to get some momentum behind it with US stocks opening higher today and US CPI beating expectations of 0.4% vs actual 0.5% y/y for Nov. However, core was just in line with expectations at 2.0% but still gives Fed the green light to hike. So far, the recovery has not been challenged while markets remain cautious ahead of the FOMC tomorrow. USD/JPY levels Technically, price has moved through the 100 SMA on the hourly at 121.32 and has broken the descending resistance line from 123.00 located at 121.00. A continuation of the recovery will seek out territory on the 122 handle meeting the 200 SMA at 121.17 currently on the same hourly time frame. Offers might be expected around current spot and R3 and a period of consolidation could be in order. If not, 122.20 here we come. ------- What will 2016 bring to the Forex traders? Attend our Forex Forecast 2016 - The Panel with Ashraf Laidi, Valeria Bednarik, Boris Schlossberg, Adam Button, Ivan Delgado and Dale Pinkert. Register for the live event on Dec. 18th and get the recording too. ------- For more information, read our latest forex news.