USD/JPY attempts recovery along with European stocks

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 9, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The bid tone on the JPY is seen easing post-European open, sending USD/JPY back towards 123 handle as risk-on returns to markets.

    USD/JPY: Risk-on seeps back

    Currently, the USD/JPY pair trades -0.09% lower at 122.81, recovering from session lows reached at 122.64 levels. The major found renewed bids this session as the yen loses ground somewhat on the back of a rebound in European stocks, with a major shift in risk conditions evident.

    However, the JPY bulls continue to fight for control as upbeat Japan’s fundamentals continue to underpin the domestic currency. After Japan dodged a technical recession in Q3, the core machinery orders released earlier on the day unexpectedly rose 10.7% in Oct versus a drop of -1.5% predicted, signalling stronger capex.

    Looking ahead, the major will continue to track the sentiment on the European stocks as well as on the Wall Street amid data-quiet trading session ahead.

    USD/JPY Technical levels to watch

    The prices drop to lows and find the immediate support placed at 122.44 (Dec 4 low) below which 122.23 (Nov 25 low) would be tested. To the top-side, the immediate resistance is now placed at hourly 200-SMA (123.02). A break above the last, the major could test 123.42/47 (Dec 8 & 7 high).
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