FXStreet (Mumbai) - USD/JPY halted its 2-day rally and fell sharply into the negative territory in the mid-Asian trades, as the US dollar failed to surpass multi-month highs and corrected lower across the board. USD/JPY drops below 10-DMA at 122.82 Currently, the USD/JPY pair drops 0.33% to fresh session lows to 122.67, retreating from 123.28 highs. The major failed to benefit from the risk-on rally in the Asian equities and upbeat Caixin China’s manufacturing survey and fell sharply in sync with the broad USD correction after the recent extensive rally. Markets resorted to lock-in gains after the US dollar index faced rejection at eight-month highs near 100.35 and slipped back to 100 mark. More so, traders remain cautious ahead of a flurry of key US macro data lined up for release later this week. On the equities front, Nikkei now rallies over 1% to 19,946. While Australia’s S&P/ASX jumps 2% to 5,269 points. While gold continues to recover and advances over 1% to $ 1070. Meanwhile, markets will continue to track the sentiment on the global equities as also the USD moves for further momentum on USD/JPY. Also, the major will be influenced by the ISM manufacturing report from the US due later today. USD/JPY Technical levels to watch The prices trade firmer and find the immediate resistance at 123.28 (Today’s High). A break above the last, the major could test 123.64 (Nov 19 High). While to the downside, the immediate support is placed at 122.28/29 (Nov 27 & 24 Low) below which 121.76 (200-DMA) would be tested. For more information, read our latest forex news.