USD/JPY bounces-off lows just ahead of 121

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The USD/JPY pair finally broke lower from its consolidative mode near the daily pivot as risk-off moods intensified on China slowdown concerns. The major now finds some support ahead of 121 handle and attempts a minor-recovery near 5-DMA.

    USD/JPY stuck in tight range below 200-DMA

    The USD/JPY pair reversed a part of BOJ-inspired gains and retreats further towards 121 handle after the European stocks accelerated to the downside on the back of renewed Chinese economic slowdown fears after the country’s poor factory data weighed on markets' sentiment.

    The Japanese currency wiped-out most losses and treads water within a striking distance of fresh session lows struck at 121.06 last hours. At the time of writing, the major trades modestly flat at 121.20 levels.

    Looking ahead, the major will continue to track the risk sentiment on the markets, and will await the US ISM manufacturing PMI and core PCE price index for impact on the USD moves.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 121.47/50 (200-DMA/ round number). A break above the last, the major could test 122.22 (Dec 11 High). While to the downside, the immediate support is located at 121 (psychological levels/ daily S2) below which 120.73 (100-DMA) would be tested.
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