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USD/JPY: drifting heavy on 121 handle

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 22, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - USD/JPY has been inching lower with some dollar weakness coming through as we head towards the closing sessions ahead of Christmas. We had some poor homes sales data from the US at 4.76m vs 5.35m exp, while the 2.0% GDP revisions were solid and beat expectations by 0.1%.

    USD/JPY in 2016

    While we are in holiday markets, moves can be unexpected exaggerated, or simply non existent. Focus should remain on 2016 and what will come of the build up and subsequent actions from Central Banks such as the Fed, BoJ's tactics and what uncertainties might add to the values of the Yen.

    Adam Button, MD at Forexlive explained that, “Crises in 2016 could come in junk bonds and if energy continues to collapse, USDJPY will go down in a classic flight to safety” Ashraf Laidi, founder of Intermarket Strategy Ltd added that “USD did not reach highs vs EUR or JPY, and that is telling”.

    This was said during when FXStreet hosted a special event about what 2016 might hold for the Forex traders. The panelists were Ashraf Laidi, Boris Schlossberg, Adam Button and Valeria Bednarik. Today, we want to share with you the recording of the whole show. Watch now and look out for commentary around the BoJ, Fed, commodities, China, uncertainties, crises and currency wars.

    USD/JPY levels

    Analysts at Scotiabank explained USD/JPY’s near‐term technical picture is less equivocal; charts are broadly bearish. Heavy trading last week leaves USD/JPY on the cusp of a push under “cloud” chart support at 120.85. A break lower may push the USD to the 119 level near‐ term. Trend momentum signals are bearishly aligned across a range of time frames, suggesting downward pressure on spot and limited upside potential near‐term (resistance at 121.50).
    For more information, read our latest forex news.

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