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USD/JPY: camping out on 123 with a bullish bias

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 8, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - USD/JPY is currently trading at 123.05 with a high of 123.40 and a low of 122.71.

    Despite the Japanese GDP in Q3 with the real GDP growth in Japan being revised upwards to an annualized expansion of 1.0% from an initially reported contraction of -0.8%, USD/JPY has set up a case for itself on the 123 handle for this month and remains better bid above the 4hr 200 SMA at 122.36 while 122.20 is a critical level according to Karen Jones, chief analyst at commerzbank.

    Fundamentally, there is favouritism again for the greenback as divergences between the fed and BoJ have risen again with targets set on 123.80 and just above the November highs.

    USD/JPY levels

    Valeria Bednarik, chief analyst at FXStreet explained that, technically, and according to the 1 hour chart, the downside is favored, as the price has extended below the 100 and 200 SMAs, with the latest acting as an immediate resistance around 123.00, while the technical indicators head south below their mid-lines, supporting further declines. "In the 4 hours chart, the Momentum indicator is crossing its mid-line towards the downside, while the RSI indicator heads lower around 44 supporting a bearish continuation, but with no momentum at the time being."
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