USD/JPY: Hurdle at 113.00 finally breached on flight to risk assets

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The USD/JPY pair has finally managed to rise above 113.00 levels as demand for the safe haven Yen dropped, while treasury yields rose on account of the risk-on in the European equities.

    Trades above hourly 50-MA

    The spot trades above its hourly 50-MA located at 113.00 levels. An attempt to rise above 113.00 earlier today failed even though the risk assets were on a front foot. However, the offered tone around JPY appears to have gathered pace, tracking the 2.2% rise in the Euro Stoxx 50 index.

    It remains to be seen if the spot managed to stay above 113.00. Oil prices and equity market action could continue to guide the pair ahead of the US manufacturing data due later today.

    USD/JPY Technical Levels

    The pair currently trades around 113.07. The immediate support is seen at 113.00 (hourly 50-MA), under which the pair could drop to 112.30 (Friday’s low). On the other hand, a break above 113.12 (Feb 10 low) would open doors for a rally to 113.69 (5-DMA).
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