FXStreet (Mumbai) - The USD/JPY finally manages to surpass 120 handle in the early European trades, having the test the strong barrier in the Asian session on several occasions. USD/JPY surpasses hourly 200-SMA Currently, the USD/JPY pair trades 0.08% at fresh session highs of 120.03, recovering from session lows struck at 119.84. The USD bulls jumped back on the bids and extend further, after trading in a tight band all through Asia. Moreover, the yen lost ground versus the greenback as the Fed-minutes induced strong gains on the US and Asian equities fuelled risk-on trades, diminishing the safe-haven bids for the yen. Nikkei rallies 1.5% while the Australian stocks finished +1.33% and the Shanghai composite jumps over 1%. Meanwhile, traders continue to assess the Fed minutes which has turned out to be net positive for markets. The US dollar continues to pose downside risks as the Fed remains concerned over US economic outlook, thus limiting further gains in the major. USD/JPY Technical levels to consider To the upside, the next resistance is located at 120.12 (hourly 100-SMA) beyond which 120.56-57 (Oct 5 & 6 Highs) could be tested. A breach of the last, the pair could climb further towards 121/121.02 (round number & Sept 17 High). To the downside immediate support might be located at 119.22-21 (Sept 29 & 24 Lows), below which 118.83 (Sept 8 Low) could be exposed. A breach of the last, the pair could drop to 118.67/65 (Oct 2 & Sept 7 Lows) levels. For more information, read our latest forex news.