USD/JPY in flat-lining below hourly 50-SMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 29, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The US dollar remains pressured against its Japanese counterpart in the late-Asian trades, with USD/JPY on the offer and in tight range below hourly 50-SMA placed at 120.42.

    USD/JPY holds above 120.20 support

    Currently, the USD/JPY pair trades marginally lower at 120.30, languishing near session lows struck at 120.24 earlier this session. The major is seen trading directionless in limited range as traders remain on the side-lines in absence of significant macro updates.

    Moreover, the range-trade in the USD/JPY could be justified on the back of a broadly lower US dollar, which caps the gains on one side. While the positive sentiment on the Asian equities keep the downside cushioned on the other. Japan’s Nikkei gains 0.53%, Australia’s ASX finished over 1% higher while the Chinese benchmark, the Shanghai Composite index advances 0.20% so far this session.

    Later today, the major eagerly awaits the US economic data due to be reported in the NY session for further momentum amid light trading.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 120.71/75 (1h 100-SMA/10-DMA). A break above the last, the major could test 121 (round number). While to the downside, the immediate support is located at 120.10 (daily S1) below which 119.73 (Oct 21 Low) would be tested.
    For more information, read our latest forex news.

Share This Page

free forex signals