FXStreet (Edinburgh) - After a brief test of session lows near 120.30 in early trade, USD/JPY has managed to gather traction and is now testing the 120.80 area. USD/JPY in 2-day lows The pair is retreating for the second consecutive session so far following the rejection at Friday’s highs near 121.70. It is worth noting that spot has advanced more than 2% in response to the interest rate cut announced by the BoJ at its meeting last week. Monday’s poor results from the US docket have also collaborated with the ongoing downside, although some decent support seems to have emerged in the 120.40/30 band. USD/JPY levels to watch The pair is down 0.17% at 120.79 with the next support at 118.41 (20-day sma) followed by 117.78 (23.6% Fibo of 123.67-115.96) and finally 115.96 (low Jan.19). On the other hand, a breakout of 121.70 (high Jan.29) would target 121.85 (76.4% Fibo of 123.67-115.96) en route to 123.67 (high Dec.2). For more information, read our latest forex news.