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USD/JPY jumps-off key support near 117.30

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The USD/JPY pair continued to remain under pressure in mid-Asia, after the Asian stocks tracked the Wall Street lower, although trims losses and reverts to the mid-point of 117 handle.

    USD/JPY recovers to 5-DMA

    Currently, the USD/JPY pair trades -0.15% lower at 117.52, retracing from fresh session lows reached at 117.31 in the last hours. Having failed near hourly 200-SMA at 118.33 in the last NY session, the major drifted lower on the back of rising safe-haven demand for the yen after the stocks plunged so as the oil prices.

    In recent dealings, the prices tested the key support near 117.30 region that has acted as a major support this week, and attempts a minor recovery the next upside barrier placed near 117.70 area.

    Meanwhile, the Chinese stocks extend previous losses, despite a neutral yuan fix, with the Shanghai index losing -1.65% while Japan’s Nikkei 22 index collapses -3.66% as markets still remain jittery in light of the falling oil prices and the looming uncertainties surrounding China.

    Markets now await a set of US data, including the weekly jobless claims and import prices, due later in the day, which may provide the much-needed lift to the US currency. While the focus will continue to remain on oil and stocks.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 118/03 (round number/ Jan 11 High). A break above the last, the major could test 118.33/39 (1h 200-SMA/ Jan 13 High). While to the downside, the immediate support is located at 117.31/20 (Today’s & Jan 12 Low) below which 117 (psychological levels) would be tested.
    For more information, read our latest forex news.

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