USD/JPY fades a spike to hourly 100-SMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 25, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    USD/JPY catches fresh bid tone in the last hour, as the yen lost complete control following BOJ Kiuchi’s comments and rebound in the Japanese stocks.

    USD/JPY takes-out 5-DMA

    The major witnessed a sudden 25-pips rally in the recent dealing, driving prices near the mid-point of 112 handle, before meeting fresh supply to now trade few pips lower at 112.32, up 0.12% on the day.

    A renewed rally in the USD/JPY pair can be attributed to a short-covering rally after the prices fell as low as 111 levels the day earlier, after heightened risk-off moods bolstered the safe-haven bids for the yen.

    Over the last hours, the dollar-yen pair found support from not so upbeat comments from the BOJ board member Kiuchi and also from the rebound seen in the Japanese stocks.

    In the day ahead, the developments surrounding the oil markets will remain in focus, while the US durable goods data will remain the main highlight ahead of Friday’s prelim GDP figures.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 112.40/43 (5-DMA/ 1h 100-SMA). A break above the last, the major could test 113.03 (10-DMA). While to the downside, the immediate support is seen at 111.82/80 (1h 20-SMA/ daily pivot) and below that at 111.05/110.98 (Feb 24 & 11 Low).
    For more information, read our latest forex news.

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