FXStreet (Mumbai) - The US dollar regained fresh momentum versus the Japanese yen in the mid-European session, driving USD/JPY towards the hourly 20-SMA located at 120.15 levels. USD/JPY: Just ahead of hourly 200-SMA Currently, the USD/JPY pair trades -0.08% at 120.12, rising from 120 handle. The USD/JPY pair was caught by renewed bid wave near 120 handle, as the yen continues to lose ground amid risk-on rally seen in the Asian and European equities. However, fresh selling interest seen around the greenback across the board keeps the recovery in USD/JPY capped. The USD index gave away gains and now trades dead flat at 95.53. Attention now turns to the key event – the FOMC minutes for further direction while the upcoming US session remains quiet in terms of economic data from the US. USD/JPY Technical levels to consider To the upside, the next resistance is located at 120.56-57 (Oct 5 & 6 Highs) beyond which 50-DMA located at 120.96 could be tested. A breach of the last, the pair could climb further towards the 200-DMA located at 121.38. To the downside immediate support might be located at 119.80 (Today’s Lows), below which 119.22-21 (Sept 29 & 24 Lows) could be exposed. A breach of the last, the pair could drop to 118.83 (Sept 8 Low) levels. For more information, read our latest forex news.