FXStreet (Mumbai) - USD/JPY extends its overnight side-trend in the mid-Asian trades and remains capped below 10-DMA amid thin liquidity as the Japanese markets remain closed today on account of ‘Culture Day’. USD/JPY drops to hourly 100-SMA Currently, the USD/JPY pair trades modestly flat at 120.73, reversing a spike to 120.85 session highs. The major met fresh supply just below 10-DMA placed at 120.90 and retreated, now testing lows near the strong support located at 120.70 region, confluence of 100 & 200-SMA on the hourly charts. The dollar-yen pair clinches yesterday’s gains and trades in flat-lining amid lack of fresh fundamentals triggers and low volumes as the Japanese traders are absent in observance of a national holiday. On Monday, the pair received fresh impetus from the above estimates US manufacturing PMI reports from both Markit as well as ISM and reached as high as 120.81 levels. The ISM said its PMI booked 50.1 last month, from a reading of 50.2 in September. While the latest final PMI reading from Markit hit a 7-month high, coming in at 54.1 in Oct, versus 53.1 seen in September. Looking ahead, markets now shift their attention towards the US macro calendar, with the factory orders and IBD/TIPP Economic Optimism to be reported later today. While sentiment on the global equities will also continue to dominate. USD/JPY Technical levels to watch The prices above the daily pivot placed at 120.60, above which the pair could test 121 handle. Above the last, the next barrier in sight is placed at 121.42 (200-DMA) While the immediate support in sight located at 120.26/22 (Oct 30 Low & 50-DMA), below which 120 (round number) would be tested. For more information, read our latest forex news.