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USD/JPY consolidating ahead of China open

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - USD/JPY has opened in Tokyo a phase of consolidation after a heavy few days for the major. The yen has garnered demand in risk-off markets and flight to safety while China dominates the market place and leaves investors panicking.

    The price had dropped from the 120 handle at the start of the year where highs were 120.38 and has made a low so far of 117.32. We now await the Chinese markets opening again to get a handle for it for the last session in the week while in the US, we have the nonfarm payrolls showdown.

    USD/JPY levels

    Technically, USD/JPY's downside remains increasingly compelling now that we have having the key support on the 117 handle. The bottom of the weekly cloud at 113.47 is some way off, but it is there and noted. However, 116.00 should be a strong support ahead of the 114.00/113.95 zone, which is the 23.6% retracement of the entire move up from the 2011 low. The 20 DMA to the upside at 118.54 is first resistance ahead of the 50 DMA a cent higher at 119.56.
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