USD/JPY: Bulls unstoppable, 118 a whisker away

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The bid tone on the USD keeps growing bigger as we progress towards the early European trades, now pushing USD/JPY to fresh daily highs just shy of 118 handle.

    USD/JPY halts a 2-day decline

    Currently, the USD/JPY pair trades 0.18% higher at 117.90, hovering close to fresh session highs posted at 117.93 last minutes. The upbeat tone seen on the European indices futures combined with the recovery in the oil prices restored investors’ confidence somewhat, refuelling the demand for risker currencies such as the US dollar. The DXY rises 0.14% t fresh session highs of 99.07, recovering from a dip to 98.87.

    Moreover, the European traders now hit their desks and digest the poor economic news from Japan, triggering a renewed selling wave in the yen and thus, driving USD/JPY further towards 118 handle. Japan's core machinery orders plunged 14.4% m/m in November, surging 10.7% in October and coming in worse than expected drop of -7.3%.

    Markets now await the European open for fresh impetus, while data-wise, the US jobless claims and import prices will keep the traders busy in the session ahead.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 118/03 (round number/ Jan 11 High). A break above the last, the major could test 118.33/39 (1h 200-SMA/ Jan 13 High). While to the downside, the immediate support is located at 117.31/20 (Today’s & Jan 12 Low) below which 117 (psychological levels) would be tested.
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