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USD/JPY attempts minor-recovery, flirts with 113

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Having bottomed ahead of 112.70 in the recent dealings, USD/JPY is seen trying hard to reclaim 113 handle as risk-off moods appear to ease.

    USD/JPY trades below all major DMAs

    The dollar-yen pair extends losses for the second straight session as the yen bulls continue to remain in control, especially after the oil prices reverted to the red zone and spooked markets once again, with investors running for cover in the safe-haven yen. At the time of writing, USD/JPY drops 0.25% to trade near 113.

    The major failed to resist 113 handle and dropped sharply post-Tokyo open as risk-off moods intensified after the Asian markets tracked the US stocks lower triggered by oil sell-off. However, over the last hour, the bulls are fighting to regain control as the US dollar is seen recovering ground versus its major rivals, while the Japanese stocks are also seen paring losses. The Nikkei 225 now loses -1.80% versus -2.25% previous.

    Meanwhile, markets shrugged-off comments from BOJ Kuroda, as he offered nothing new. Focus now remains on the US CPI data for fresh cues.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 113.16 (1h 10-SMA). A break above the last, the major could test 113.57/79 (Daily pivot/ 5-DMA). While to the downside, the immediate support is seen at 112.72 (daily low) and below that at 112 (round number).
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