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USD/JPY drops further to 118.70

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Edinburgh) - The Japanese currency keeps appreciating vs. its American peer on Monday, now dragging USD/JPY to fresh lows near 118.70.

    USD/JPY weaker ahead of US ISM

    The pair is trading in 3-month lows in the 118.70 area, deriving further support from the prevailing risk aversion and the generalized weakness surrounding the greenback. Spot is thus extending its decline after being rejected from December peaks in the mid-123.00s, decisively breaking below both the 120.00 and 119.00 handles.

    Ahead in the NA session, the US manufacturing sector will be in the limelight, with the releases of the ISM and Markit gauges.

    USD/JPY levels to consider

    As of writing the pair is retreating 1.16 % at 118.81 facing the next support at 118.55 (23.6% Fibo of 125.28-116.46) followed by 118.04 (low Oct.15) and then 116.46 (low Aug.24). On the flip side, a breakout of 120.87 (50% Fibo of 125.28-116.46) would open the door to 121.12 (100-day sma) and finally 121.63 (200-day sma).
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