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USD/JPY drops further to 112.30 as USD resumes slide

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 30, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The JPY bulls appear to tighten their grip once again in mid-Asia, sending USD/JPY back towards daily lows as the Japanese stocks extend to the downside.

    USD/JPY eyes 112 ahead of US ADP

    The selling pressure on the USD/JPY intensified over the last hour after the US dollar resumed the overnight slide against its major peers, as markets continue to weigh Fed Yellen’s dovish stance on the interest rates outlook. At the time of writing, USD/JPY trades at 112.31, miring near session lows posted at 112.27, down -0.32% on the day.

    The major further accelerated to the downside as a renewed bout of risk-aversion hit markets and boosted the safe-haven appeal of the yen after the Japanese equities dived deeper in the red. The benchmark Nikkei 225 index sinks -1.08% and surrenders 17k barrier.

    Looking ahead, attention shifts towards the US ADP jobs report due later today, while the sentiment surrounding oil and stock markets will continue to play a crucial role.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 113 (round number/ 5-DMA). A break above the last, the major could test 113.29/45 (1h 50-SMA/ daily R1). While to the downside, the immediate support is seen at 112.12/00 (Mar 23 Low) and below that at 111.36/20 (Mar 22 & 21 Low).
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