FXStreet (Mumbai) - The USD/JPY rally seen in the mid-Asian session lost steam near 200-DMA now located at 121.42 and drifted lower towards 121 handle as the greenback recedes against its major competitors. USD/JPY hovers around 1h 20-SMA Currently, the USD/JPY pair trades 0.05% higher at 121.13, retracing from session highs reached at 121.38 levels after Tokyo open. The major ran through offers near the crucial resistance of 200-DMA and turned lower after the US dollar halted its upsurge and trimmed gains versus its six major peers. A sudden bout of buying interest was seen in the US dollar versus the Japanese yen in early Asia after the Japanese equities re-opened on a stronger footing and soared over 2%, triggering renewed risk-on sentiment. While Dec Fed rate hike talks gaining momentum ahead of the official jobs report due later this week also bolstered the USD bulls. Looking ahead, the major will track the sentiment on the European markets ahead of a host of important data from the US, including the ADP jobs report due later in the New York session. Besides, the Fed Chair Yellen’s speech will remain the main highlight for today. USD/JPY Technical levels to watch The prices failed near 200-DMA and retreated towards the immediate support seen at daily pivot at 120.95, below which 120.57 (Nov 3 Low) would be tested. A failure to breach the last, the prices could rebound towards 121 handle, above which the immediate hurdle is seen at 121.38/42 (today’s High/ 200-DMA). For more information, read our latest forex news.