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USD/JPY extends risk-rally towards hourly 200-MA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 13, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - With the risk-sentiment getting better following the release of impressive Chinese trade data and on optimistic comment from US President Obama, the USD/JPY pair keeps pushing higher, with the hourly 200-SMA at 118.60 now in sight.

    USD/JPY regains 118 and beyond

    Currently, the USD/JPY pair trades 0.56% higher at fresh three-day highs of 118.35, extending its recovery from five-month lows reached at 116.70. The bid tone around the USD/JPY keeps growing bigger on the back of renewed appetite for risky assets, after the rebound in Asian stocks and surprising positive China trade data further boosted the risk-on market profile.

    Moreover, the USD bulls were bolstered by the optimistic comments from Obama on the US economy, thereby collaborating to the rally in USD/JPY. The greenback, gauged by the US dollar index trades 0.22% higher at 99.25 levels.

    Meanwhile, the US President Obama in his prepared remarks noted, "The United States of America, right now, has the strongest, most durable economy in the world. We’re in the middle of the longest streak of private-sector job creation in history. More than 14 million new jobs; the strongest two years of job growth since the ‘90s; an unemployment rate cut in half.”

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 118.60/77 (1h 200-SMA/ Jan 8 High). A break above the last, the major could test 119.00/10 (round number/ daily R3). While to the downside, the immediate support is located at 117.68 (5-DMA) below which 117.20/117 (Jan 12 low) would be tested.
    For more information, read our latest forex news.
     

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