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USD/JPY finds fresh bids at 113.80, re-takes 114

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 2, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Having failed to hold above 114 handle, USD/JPY retreated over the past couple of hours, now bouncing-off 113.80 in a bid to reclaim 114.

    USD/JPY supported as Nikkei surges

    The major is seen making minor-recovery attempts and looks to retest 114 handle as bullish run in the Nikkei gathers pace and offers fresh impetus to the pair. At the time of writing, the Nikkei 225 surges +4.30% to 16.783, while USD/JPY recovers to 113.98, still down -0.05% on the day.

    The dollar-yen pair retraced from near one-week highs earlier on the day as the US dollar corrected lower against its major peers after stronger US manufacturing data-inspired gains booked yesterday. Following the US ISM PMI release, the major rocketed more than 100 pips beyond 114 handle.

    Meanwhile, BOJ’s Kuroda’s positive comments on the inflation prospects also provided a brief relief to the yen. Looking ahead, the US ADP employment change numbers and EIA crude reserves report is lined up for release in the NA session, and could have major impact on the pair.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 114.21/33 (March 1 & Feb 18 High). A break above the last, the major could test 114.70/72 (daily R1/ Feb 15 High). While to the downside, the immediate support is seen at 113.66/54 (5-DMA/ 1h 20-SMA) and below that at 113.13/01 (1h 100 & 50-SMA).
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