USD/JPY: kicks off with offers, capped by 1hr 20 sma

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 23, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    USD/JPY is currently on the offer in the opening sticks of Tokyo. The Yen is testing the upside resistance across the board and recent lows of overnight trade through 112.80 vs the greenback, with a break of there to print fresh lows of 112.75 having lost recent highs on the 113 handle of over night trade.

    There is little to come in Asia as a catalyst and we await the US data, although we just heard Japan's economy minister, Noboteru Ishihara, explained that they are not engaged in competitive currency devaluation.

    Further ahead we will have the G20 in Shanghai where currency will be a topic on the agenda and could be a market moving event in USD/JPY, depending on the outcome.

    USD/JPY levels

    USD/JPY has been offered since failing last week last week just below the 115.07, 38.2% retracement of the move down from the February peak. While below here, the downside is open and further declines target a break of the psychological 112 handle for a test of 111.66 (S2) 11th Feb low and S3 at 111.38 ahead of 110.97, 2016 low. RSI (14) 49 on the hourly while the daily is headed to oversold territory with RSI (14) at 32.
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