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USD/JPY consolidated but testing 123 handle

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 11, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - USD/JPY is currently trading at 123.04 with a high of 123.23 and a low of 122.99.

    USD/JPY is opening Tokyo lower following a mixed close on Wall Street weighed by Chinese trade balance, CPI's and the prospect for today's data dump that includes key Industrial Production.

    USD/JPY is in a phase of consolidation while the greenback remains firm and favoured after the Nonfarm Payrolls gave the green-light for a Fed hike in December which markets are pricing in while the bullish tone from BoJ officials are not doing much to stave off the idea that Japan is heading towards the possibility of further easing.

    USD/JPY levels

    Technically, trading below the 123.20 resistance is bearish and continued failures to move through such levels on the 123 handle would open up the target of 122.44 S2. The multi-year high set in June JPY125.85 and the August high JPY125.30 are the key upside targets.

    Karen Jones, chief analyst at Commerzbank suggested, "The accelerated uptrend lies at 121.35 ahead of the 3 month support line at 118.97. Key support remains 117.86 the 2012-2015 uptrend, while above here we are bullish. Above 123.75 targets 125.00/28 (the August high). While this may provoke some profit taking, we target 127.90/93 longer term, which is the 61.8% retracement of the move down from the 1990 peak"
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