FXStreet (Guatemala) - USD/JPY is making a very minor recovery having been sold off in a riks-off environment overnight and having lost the 120 handle yet again, extending upon the previous lows in the US shift below 120 also. The outlook remains bearish although fundamentals also support the upside and a recovery given the BoJ's latest moves. However, the Yen remains in favour for the time being as oil continues to drive fear into investors. The Central Banks are all competing in the currency wars and the BoJ's recent move may be just the beginning of a continued struggle to battle the deflationary pressures, global headwinds and turmoil, exposing the downside case in the Yen further out. USD/JPY: fundamentals remain bullish - Scotiabank USD/JPY levels Technically, the major has been noted falling just shy of the 78.6% Fibonacci retracement at 121.96 recently. Through there, on a correction of current trend, the 123.77 November high is in focus ahead of 125.28, the August high and the 125.86 June high. However, to the downside, and while spot is way below the pivot of 121.08, S3 is located at 119.75 and the 20 dma is located at 118.36. For more information, read our latest forex news.