FXStreet (Mumbai) - The Japanese yen is seen picking-up significant strength versus the US dollar after the European open, pushing USD/JPY towards 10-DMA located at 120.30. USD/JPY rejected once again near hourly 20-SMA Currently, the USD/JPY pair drops -0.56% to 120.41, retreating from fresh session lows struck near 120.34. A renewed bid wave caught the yen as risk-aversion intensified on falling European stocks, with the DAX losing -0.37% while the Euro Stoxx 50 drops -0.46%. Moreover, investors flocked to safety-assets such as the Japanese currency as focus now remains on tomorrow's Fed decision and Friday’s BOJ meeting, which are expected to set further direction on the USD/JPY pair. In the day, the major will continue to track the sentiment on the equities while a host of crucial macro data from the US, including the durables goods and consumer confidence data will be eyed. USD/JPY Technical levels to consider The prices are seen breaking through the hourly 100-SMA at 120.55, with the immediate support in sight at 120.30 (10-DMA), below which 120.10/08 (50 & 20-DMA) would be tested. While to the upside, 120.81 (hourly 20-SMA) remains the key barrier, above which the pair would climb further towards 120.99/121 (5-DMA + round number). For more information, read our latest forex news.