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USD/JPY: Fresh bids coming in at Tokyo, testing 123 handle

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 20, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - USD/JPY extends the recovery from NY lows and trades within a shouting distance of 123 barrier, having found fresh bids near the hourly 20-SMA as Tokyo markets kick-off the last trading day of the week.

    USD/JPY eyes hourly 200-SMA above 123 levels

    Currently, the USD/JPY pair trades modestly bid at 122.91, trying hard to break through 10-DMA located at 123.96. The US dollar halts its corrective slide and attempts another run to regain 123 handle versus its Japanese rival, as the greenback received fresh impetus from Fed Fischer’s comments delivered in Asia opening hours.

    The Fed Vice-Chairman Stanley Fischer clearly signalled a Dec rate lift-off, stating, "some major central banks" could move away from near-zero interest rate policy "in the relatively near future."

    Moreover, the recovery in the major gained further steam after Atlanta Fed President Dennis Lockhart also said he is "comfortable" with raising the rates "soon." While markets continue to cheer the latest upbeat US jobless claims and the manufacturing data released on Thursday.

    Looking ahead, markets will continue to digest the latest Fed speak ahead of the ECB Chief Draghi’s speech due later in the European session. While today’s trading calendar remains absolutely data-dry in terms of economic news.

    USD/JPY Technical levels to watch

    The prices eye 123 handle and face immediate resistance at 123.06 (1h 200-SMA). A break above the last, the major could test 123.21 (5-DMA). To the downside, the immediate support in sight at 122.62 (NY Low) below which 122.33 (20-DMA) would be tested.
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