FXStreet (Mumbai) - The selling interest around the USD seems picking-up pace heading towards the European open, knocking-off USD/JPY to fresh session lows on the 120 handle. USD/JPY breaks through hourly 20-SMA support at 120.89 Currently, the USD/JPY pair trades 0.20% lower at 120.80, hovering around fresh session lows struck at 120.75 some minutes ago. The major faced rejection at hourly 50-SMA then located at 121.18 and extends to the downside thereon, mirroring the downward moves seen in the US dollar against its major competitors, backed by falling US treasury yields. The USD index drops -0.34% to fresh session lows reached at 97.38. Moreover, the yen bulls remains in command after most major Asian indices ended sharply lower while the European indices futures also trade flat-to-lower, boosting the demand for the yen as a safe-haven. Looking ahead, the major will continue to track the sentiment on the European markets ahead of the US CPI data. While the USD bulls may remain on the back foot as the Fed begins its 2-day monetary policy meeting later today. USD/JPY Technical levels to watch The prices fall further and find the immediate support is located at 120.57 (Dec 11 Low) below which 120.35 (Dec 14 Low) would be tested. While the immediate resistance is located at 121.18 (daily high). A break above the last, the major could test 121.48 (1h 100-SMA). ------- 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.