FXStreet (Córdoba) - The Japanese yen is rising modestly against the US dollar as it continues with the correction following last week's rally, when USD/JPY climbed from 120.60 to 123.15, boosted by a stronger greenback and particularly on Friday after the upbeat US employment report. Rate hike expectations in the US continue to offer support to the USD in the currency market. USD/JPY is pulling back after hitting extreme overbought reading in technical indicators. The decline from 3-motnhs highs that reached on Monday at 123.59, has been limited but constantly. Today it bottomed at 122.65 and then rebounded back to 123.00. During the last hour of trading in New York, the USD again lost strength and moved toward daily lows. USD/JPY still bullish, still above key levels The trend continues to favor the USD against the yen. Price is well above key MAs and also on top of 121.50/70, a previous key resistance that now could become a support if the decline continues. If the pair falls below 121.20, where the 20-day MA currently stands, the technical outlook for the US dollar would weaken considerably and the old trading range between 121.70 and 118.70 would back in play. For more information, read our latest forex news.