FXStreet (Mumbai) - A sudden rally in the USD/JPY pair at Tokyo open lost steam, with the major now wiping out gains and languishes near daily lows. USD/JPY fails near h1 R1 Currently, the USD/JPY pair trades flat at 120.70, unable to extend beyond 121 barrier. The USD/JPY pair faded a spike to 121 after the Japanese markets opened on an upbeat note, further fuelling the risk-on moods sparked by the dovish ECB news on Thursday. The major is now seen consolidating the recent heavy gains and is bidding up for further upside (beyond 121) as risk-on sentiment dominates and dampens the safe-appeal of the yen. Nikkei opened on a stronger footing, and now is seen stabilizing over +2%. The USD/JPY pair broke higher from 120 in the last US session after the ECB Chief Draghi’s sounded more dovish and stressed on QE re-examination in Dec, fuelling the rally in riskier assets amid increased expectations of more easy money flooding in markets. In the day ahead, the pair will take cues from the upbeat sentiment on the equities amid a data-dry macro calendar for the major. Focus now shifts towards next week’s FOMC and BOJ decisions. USD/JPY Technical levels to consider The pair is failed at 121 handle and now finds the immediate support might be located at 120.49/23 (daily pivot + 5-DMA), below which 120.11/120 (50-DMA + round number) would be tested. While, to the upside the next resistance is located at 121 (round number). Above the last, the pair could climb further towards 121.36/42 (daily R1 + 200-DMA). For more information, read our latest forex news.