USD/JPY finds good support at 121.60

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - A renewed rally in the USD/JPY met fresh supply near 10-DMA (121.87) and the prices dropped sharply to fresh session lows, before recovering slight to 121.70 levels where it now wavers.

    USD/JPY listless in Asia, awaits fresh cues

    Currently, the USD/JPY pair trades almost unchanged at 121.70, holding on above 121.60 support. The major halted its upbeat momentum and erased early gains as the bulls remain divided between rallying Asian equities and the prevailing US dollar correction against its major peers.

    The solid bounce in Asian stocks makes for a favourable sentiment across the financial markets, limiting the downside in USD/JPY. The Japanese Nikkei jumps 2.13% and Australia’s ASX is advancing 2% so far. While on the other hand, broad based US dollar retreat after yesterday’s sharp rally keeps a lid on the prices.

    However, in the day ahead, the major is likely to
    remain underpinned ahead of the Fed decision, with a 25 bps hike in interest rates expected to provide further boost to the USD bulls.

    USD/JPY Technical levels to watch

    The prices head higher and find the immediate resistance at 121.87/95 (10-DMA/ 200-DMA). A break above the last, the major could test 122.11 (50-DMA/ 1h 50-SMA). While to the downside, the immediate support is located at 121.59 (daily low) below which 121.34 (1h 100-SMA) would be tested.

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