FXStreet (Córdoba) - USD/JPY turned lower and retraced intraday gains as the US dollar failed to retain the firm tone against the yen with risk sentiment deteriorating during the European session. USD/JPY failed to hold above the 121.00 level and turned south, falling toward a session low of 120.65 in recent dealings. At time of writing, the pair was trading at 120.78, virtually unchanged on the day. In the absence of first-tier data and only two days ahead of the Federal Reserve verdict, investors might choose to either remain sidelined or adopt a cautious stance. USD/JPY levels to watch On the downside, next supports are seen at 120.57 (Dec 11 low), 120.24 (Nov 2 low) and then 120.00 (psychological level). On the flip side, resistances could be faced at 121.60/61 (50- 200- and 100-day SMAs) and then the 122.25/30 area (former support zone) ahead of 123.00 (psychological level). ------- 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.