USD/JPY attempts a tepid bounce amid negative equities

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The JPY bulls take a breather after the extensive rally, now pushing the USD/JPY pair back above 113 handle as dust settles over BOJ decision and focus shifts towards the Fed verdict.

    USD/JPY awaits US retail sales, FOMC

    The dollar-yen pair is seen making minor recovery attempts from a dip below 113 handle, now trying hard to extend further beyond the last.’ At the time of writing, USD/JPY trades at 113.07, stalling its downslide at 112.94, still down -0.65% on the day.

    The major suffers from double whammy this Tuesday after the BOJ surprised markets with a hawkish stance and propped up the yen. While the extension of the risk-off trades into Europe on the back of the sell-off in the European stocks alongside oil, also boosted the safe-haven bids for the JPY and dragged USD/JPY to fresh two-day lows.

    With the BOJ decision behind, focus now remains on a fresh batch of US macro data, including the retail sales, PPI index, CPI and housing data. While the FOMC statement along with the SEP is likely to grab the eyeballs tomorrow.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 113.27 (20-DMA). A break above the last, the major could test 113.45/53 (1h 200-SMA/ 5-DMA). While to the downside, the immediate support is seen at 112.76 (Mar 11 Low) and below that at 112.20/14 (Mar 9 & 1 Low).
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