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USD/JPY is not impressed by oil rally and uptick in US stocks

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The USD/JPY just hit fresh session low of 118.87, indicating the investors are convinced by the oil rally and the resulting moderate gains in the US stocks.

    Stability will be short-lived?

    The stability in the equities seen in the early US session could very well turn out to be short-lived, since oil rally lacks fundamental base and appears largely chart driven. Hence, the bid tone around safe haven JPY refuses to weaken.

    The pair remains at the mercy of the sentiment across Wall Street. Meanwhile, the US ISM non-manufacturing number for January could also influence the pair.

    USD/JPY Technical Levels

    The spot trades around 118.90. The immediate support is seen at 118.65 (Jan 28 close), under which the spot could target 118.30 (23.6% of 125.856-115.97). On the other hand, a break above 119.75 (38.2% of 125.856-115.97) could open doors for a rise to 50-DMA at 120.25.
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