The US dollar regains its pose in a thin European morning session and made steady gains against the yen to rally to the high of 120.38 from 119.80 (+58 pips) after trading in a narrow 34 pip range of 120.10-119.74 in the prior Asian session.
The market is thin with the Japanese participants away for a three day market holdiay. The yen weakened Monday, on the prospect of the Bank of Japan may ease monetary policy after the Fed postponed a rate hike.
However, the move is not a trend but rather the quarter-end position adjustments by trades. Over the weekend, San Francisco Fed President John Williams said that a U.S. rate hike decision last Thursday was a "Close Call" - Fox news Saturday, which prompted some dollar buying interest in Europe this morning.
The 14-day moving average made steady gains to 120.32 from 119.76.
Near-term resistance: 120.40 120.70, 120.95. 121.10
Near-term support: 119.70 119.10, 118.95
Chart: WorldWideMarkets Alpha Trader