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US dollar sees muted reaction against Yen after US data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 17, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The USD/JPY pair shed a couple of pips, but remains largely muted despite the weaker-than-expected US data release.

    Up for third consecutive day

    The USD/JPY pair is up for the third consecutive day as the demand for the USD stays intact after the Fed delivered a hawkish rate hike. The long duration treasury yields are down, however, the rate sensitive two-year yield is still hovering around 1%; its 5-/12 year high.

    Consequently, the uptick in the US weekly jobless claims and a bigger-than-expected contraction in the Phily Fed manufacturing index was ignored by the markets. The pair could continue to track the short duration treasury yields ahead of the NY closing.

    USD/JPY Technical Levels

    The pair fell to 122.43 from 122.54 on data, but quickly recovered the 9-pip loss. The immediate resistance is seen at 123.01 (July 27 low), above which the pair could test 123.55 (76.4% of 125.856-116.082). On the other hand, a break below 122.12 (61.8% of 125.856-116.082) would open doors for a drop to 121.59 (200-DMA).
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