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USD/JPY: Fresh offers coming-in as European equities drop

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 27, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The USD/JPY is again pointing southwards as the safe haven demand for the Yen is on the rise due to the moderate weakness in the European equities.

    Breaks below hourly 100-MA

    The pair is trading slightly below its hourly 100-MA located at 118.15. The spot rebounded from the hourly 100-MA yesterday and also founds earlier today at the same. The latest decline is due to the 0.80% drop seen in the pan-European Euro Stoxx 50 index.

    The European equities fell as oil prices declined following a bearish American Petroleum Institute report oil inventories. The spot remains at the mercy of the risk sentiment ahead of the FOMC rate decision due later today.

    USD/JPY Technical Levels

    The pair currently trades at 118.10. The immediate support is located at 117.68 (hourly 200-MA), under which the pair could drop to 117.20 (Jan 8 low). On the other hand, a break above 118.33 (hourly 50-MA) could see the pair test major resistance at 118.88 (Jan 22 high).
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