1. Hello Guest Click here to check FX Binary Point Financial Directory

USD/JPY: 109 tested as Nikkei hits fresh session highs

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 13, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The offered tone around the JPY keeps growing bigger as we progress towards the European open, mainly driven by improving risk sentiment as the Japanese stocks extend the rally.

    USD/JPY: Will buyers take control above 109?

    The major spiked to fresh daily highs at 109 levels after the Nikkei climbed further to hit fresh highs, triggering a renewed risk-on wave in the markets, which further dampened the safe-haven appeal of the yen. At the time of writing, USD/JPY eases-off session highs and trades around 108.90, still up +0.90% on the day.

    The fresh buying interest witnessed around the riskier assets such as the equities, was fuelled by upbeat Chinese trade data. The Japanese Nikkei rallies +2.84%, while China stocks are up almost +2.50%.

    Meanwhile, markets appear to ignore the renewed weakness in the oil prices as sentiment remains underpinned by higher equities and strong Chinese imports and exports numbers. Ahead in the day, the traders continue to track the sentiment in the oil and stock markets ahead of crucial US retail sales and PPI data due later in the NY session.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 109.11 (Apr 8 High). A break above the last, the major could test 109.31/33 (10-DMA/ daily R2). While to the downside, the immediate support is seen at 108.51/44 (daily low/ pivot) and below that at 108.09/00 (daily S1).
    For more information, read our latest forex news.

Share This Page