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USD/JPY extends correction to hourly 50-SMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 26, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - Having faced rejection near 123 handle in the US last session, the USD/JPY pair continues to correct lower, now reaching fresh session lows near hourly 50-SMA at 122.57.

    USD/JPY on its way to 122.20 support?

    Currently, the USD/JPY pair trades -0.16% lower at fresh session lows of 122.55, unable to take out 20-DMA located at 122.80. The major keeps pushing lower, as the USD bulls failed to surpass 123 barrier for the second time this week and ran through fresh offers, despite Wednesday’s upbeat US durable goods, consumer sentiment and weekly jobless claims data.

    Moreover, the downside in the USD/JPY pair could be attributed to the rising demand for the yen ahead of the Japanese CPI report due tomorrow. Tokyo consumer prices are seen improving in Oct while the National CPI is expected to remain unchanged from previous -0.1%.

    Meanwhile, low volumes on Thanksgiving holiday coupled lack of economic news are expected to make for a quiet trading day ahead.

    USD/JPY Technical levels to watch

    The prices trade near session lows and finds immediate support at 122.20 (Nov 16 Low) below which 121.71 (200-DMA) would be tested. To the topside, the immediate resistance is located at 122.71/75 (5-DMA/1h 100-SMA). A break above the last, the major could test 122.96 (1h 200-SMA).
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