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USD/JPY hits new session lows as China sell-off resumes

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The recovery seen in the USD/JPY during the first half-Asia lost pace near 119.70 level as the yen bulls fought back control amid resumption of the rout in the Chinese equities.

    USD/JPY eyes daily lows at 119.10

    Currently, the USD/JPY pair trades -0.05% lower at 119.38, hovering close to fresh session lows reached at 119.34 last minutes. The major ran through fresh offers after the Chinese equities halted their rebound and fell back into the red zone, triggering a renewed bout of risk-off trades and thus, boosting the safe-haven bids for the Japanese yen. The Shanghai Composite index drops -1.50% and the Hang Seng loses nearly 1%. While China’s A50 index slides -0.20%.

    Markets continue to track the sentiment on the global markets amid lack of significant economic news for the JPY in the day ahead. Meanwhile, focus now remains on the FOMC minutes due tomorrow and Friday’s key jobs numbers from the US for fresh incentives on the major.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 119.76 (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 119.28 (1h 20-SMA) below which 119/118.86 (psychological levels/ daily S1) would be tested.
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