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USD/JPY: Bulls fighting hard for 123 handle

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 2, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The US dollar remains better bid against the Japanese currency at Tokyo open, with USD/JPY hovering few pips shy of 123 handle.

    USD/JPY holding on above key support near 122.80


    Currently, the USD/JPY pair trades modestly flat at 122.92, eyeing for a retest of 123 barrier. The major tries hard to recover lost ground in wake of negative start to the Japanese markets and extension of the overnight US dollar weakness into Asia. Nikkei open -0.30% lower and trades near 19,950. While Australia’s S&P/ASX snaps previous rally and drops -0.48% to 5,240 points.

    Moreover, the greenback extends its weakness across the board, after the awful US ISM manufacturing report, which added to the week set of data released earlier this week and refuelled concerns over the health of US economy. The ISM said its manufacturing PMI index booked 48.6 last month, from a reading of 50.1 in October.

    Looking ahead, markets now shift their attention
    towards the US ADP jobs report followed by Fed Chair Yellen’s speech for further cues on the Fed interest rate outlook. In the meantime, the major may continue to track the broader market sentiment.

    USD/JPY Technical levels to watch

    The prices remain slightly bid and find the immediate resistance at 123.29 (Dec 1 High). A break above the last, the major could test 123.64 (Nov 19 High). While to the downside, the immediate support is placed at 122.81/79 (1h 100 & 200-SMA) below which 122.62 (Dec 1 Low) would be tested.
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