USD/JPY flirts with 119, Monday’s low on sight

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The bearish momentum in the USD/JPY pair gathers pace in the European session, knocking-off the major nearly 70 pips from daily highs.

    USD/JPY eyes Monday’s low

    Currently, the USD/JPY pair trades -0.38% lower at fresh session lows of 118.96, notwithstanding 119 handle. The major keeps pushing lower, as the yen continues to dominate in Europe after the European stocks reversed early rebound and fell back in the red, fuelling a renewed bout of risk-aversion. The German DAX now drops -0.40% from +0.38% in early trades while the UK’s FTSE pares gains to now trade 0.16% higher.

    The dollar-yen pair remains pressured as the yen completely brushed away BOJ Kuroda’s that hit the wires pre-European open. BOJ Chief Kuroda said that the central bank is “ready to take additional bold measures if needed to hit price target.”

    Meanwhile, the pair is likely to get influenced by risk-off sentiment on the global equities while the macro calendar remains absolutely dry for the major in the day ahead.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 119.67 (1h-50-SMA). A break above the last, the major could test 120/120.01 (round number/ 5-DMA). While to the downside, the immediate support is located at 118.86 (daily S1) below which 118.68 (Jan 4 Low) would be tested.
    For more information, read our latest forex news.

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