FXStreet (Córdoba) - USD/JPY trimmed losses during the American session and it was hovering around 121.00, almost 40 pips below Friday’s closing price. On a quiet session, the yen lost ground across the board and gave strength to the USD/JPY that after bottoming at 120.59 following the release of US housing data bounced to the upside. The pair is lower for the day but it managed to rise 50 pips from the lows. USD/JPY outlook Currently the pair is trading slightly below the 20-hour MA, that stands at 121.05, if it rises above it could gain momentum and recover further during the last hours of the day; while if it holds below 121.00, the downside bias is likely to prevail. On a wider perspective, the pair continues to move with a bullish bias, moving in an uptrend channel; that currently offers dynamic support at 120.40: a break below could remove momentum to the US dollar. To the upside, the key resistance lies the 121.50/60 area, that capped the rally today and also during the last week of August. For more information, read our latest forex news.