FXStreet (Mumbai) - USD/JPY erased more than half of yesterday’s FOMC-backed gains, although now recovers from lows struck near 10-DMA, with the yen bid on the back of stronger Japan’s industrial production data. USD/JPY trades below daily pivot & 5-DMA near 120.90 Currently, the USD/JPY pair drops -0.30% to 120.73, recovering from fresh session lows posted at 120.59 after Tokyo open. The JPY bulls fought back control after Wednesday’s less dovish FOMC induced downward spike and now remains in complete control versus the US dollar following the release of upbeat Japan’s industrial output figures, which appears to ease the pressure on the BOJ to ease this week. Industrial output in Japan rose a solid 1% m/m in September, opposed to market expectations of a 0.5% decline in output. Moreover, broad based US dollar correction after the recent upsurge also weighs on the USD/JPY pair. The US dollar spiked to almost three-month highs against its major peers on Wednesday after the FOMC kept the option of Dec rate hike alive. Further, weakness in the Asian stocks, with Nikkei erasing gains and now in the negative territory also drives the safe-haven demand for the Japanese currency. The Nikkei is down -0.10% while Australia’s S&P/ASX is down -0.86% and SSEC loses -0.20%. Looking ahead, markets will continue to digest the latest Fed decision, with the focus now turning to the advance GDP estimate from the US due later today. While BOJ policy decision due tomorrow remain the main highlight. USD/JPY Technical levels to watch The prices are finds fresh bids near 10-DMA at 120.61, with the immediate resistance seen at 120.93/121 (5-DMA/ round number), above which the pair would climb further towards 121.28 (Oct 28 High). To the downside, the immediate support in sight is located at 120.61/54 (10-DMA/ 1h 50-SMA), below which 120.14 (20 & 50-DMA) would be tested. For more information, read our latest forex news.