FXStreet (Edinburgh) - The Japanese yen continues to gather some traction vs. its American counterpart on Wednesday, with USD/JPY currently hovering over the 123.00 neighbourhood. USD/JPY retreats from 123.60 Spot keeps correcting lower after being rejected from recent 3-month peaks in the 123.60 area, as the dollar is giving away part of the recent strong gains. Despite expectations of a Fed’s lift-off in December remains on the rise, the softer tone from US Treasuries as of late has removed an important tailwind for the pair’s upside, prompting spot to retrace further towards the 122.80 area. US markets are closed today due to the Veterans Day holiday, leaving spot to the mercy of the broader risk trends ahead of tomorrow’s releases in Japan: Foreign Bond Investment and Machinery Orders figures. USD/JPY levels to consider At the moment the pair is losing 0.13% at 123.04 and a breach of 121.76 (100-day sma) would aim for 120.87 (50% Fibo of 125.28-116.46) and then 120.53 (55-day sma). On the other hand, the next up barrier aligns at 123.60 (high Nov.9) followed by 124.58 (high Jul.30) and finally 125.29 (high Aug.12). For more information, read our latest forex news.