USD/JPY attempting break above 113.00 after US data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 12, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The bid tone around USD strengthened after upbeat US data; despite which the USD/JPY pair is struggling to secure a convincing break above 113.00 levels.

    Rejected at 113.16

    The spot quickly jumped to 113.16 following the release of a better-than-expected US retail sales data, before falling back below 113.00 handle. As of writing, the pair traded around 112.90 levels. The odds of a break above 113.00 are high, given the upbeat action in the US stock index futures and strong US data.

    However, it remains to be seen if the traders continue to unwind JPY shorts ahead of the extended weekend or hold positions in anticipation of fresh risk-off next week after China makes a comeback from holiday.

    USD/JPY Technical Levels

    The immediate support is seen at 112.76 (hourly 50–MA), under which the spot could drop to 111.54 (127.2% of May 2015 high-Aug 2015 low-Nov 2015 high). On the other hand, a break above 113.59 (previous day’s high) could see the spot target 114.16 (100% fib expansion of May 2015 high-Aug 2015 low-Nov 2015 high).
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