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USD/JPY hovers over 119.20 on US ISM

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Edinburgh) - The greenback remains on the back footing vs. the US dollar on Monday, with USD/JPY now testing the 119.00 handle following US releases.

    USD/JPY paid little attention to ISM

    The pair keeps the red territory at the beginning of the year against the backdrop of increasing risk aversion, which continues to favour the Japanese safe haven. However, spot has managed to bounce off 3-month lows in the 118.70 area posted in early trade as some buying interest showed up around the dollar.

    In the data space, US ISM Manufacturing came in below estimates for the month of December. Markit’s manufacturing PMI and Construction Spending have also followed suit, disappointing market expectations.

    USD/JPY levels to consider

    As of writing the pair is retreating 0.77 % at 119.28 facing the next support at 118.55 (23.6% Fibo of 125.28-116.46) followed by 118.04 (low Oct.15) and then 116.46 (low Aug.24). On the flip side, a breakout of 120.87 (50% Fibo of 125.28-116.46) would open the door to 121.12 (100-day sma) and finally 121.63 (200-day sma).
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