FXStreet (Mumbai) - The JPY demand remains intact in Europe amid losses in equities, resulting in a drop in the USD/JPY pair below the 200-DMA at 121.59 levels. Key support zone breached The pair took out the key support zone of 121.77-121.59 – 50-DMA, 100-DMA and 200-DMA in Europe to print a session low of 121.14. The bid tone on the JPY gathered pace after the BOJ decision and strengthened further on account of the losses in the European equities. The treasury yields in the US have dipped as well, which indicates a risk-off trade might be underway. Consequently, the USD/JPY pair is eyeing key support at 120.97 (50% of 125.856-116.082). USD/JPY Technical Levels At 121.12, the immediate support is seen at 120.97 (50% of 125.856-116.082), under which the pair could drop to 120.34 (Nov 14 low). On the other hand, a break above the key resistance zone of 121.59-121.77 (200-DMA, 100-DMA and 50-DMA), above which the pair could revisit the 122.12 (61.8% of 125.856-116.082). For more information, read our latest forex news.