USD/JPY making headway towards 110.00

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The USD/JPY pair caught fresh bid tone in the Asian session this session and resumed its upward trajectory, now printing fresh weekly highs.

    USD/JPY finds support ahead of daily pivot at 109.26

    The offered tone around the Japanese currency keeps growing bigger in mid-Asia, as risk-sentiment got a further lift after the Chinese data came in much better than expected and therefore, diminished the safe-haven bids for the yen. At the time of writing, USD/JPY flirts with daily highs at 109.73, up +0.26% on the day.

    Further, the dollar-yen pair ignored the lack-lustre trading on the Asian indices and jumped higher, as a minor pullback in oil prices offered support to the overnight recovery in the major. The USD/JPY pair dropped briefly below 109 handle in the US last session after the US CPI figures disappointed markets.

    Ahead in the day, the broader market sentiment will continue to influence the moves in USD/JPY ahead of a fresh batch of US economic updates, viz., industrial production, prelim consumer sentiment and the regional manufacturing index.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 109.86/89 (Apr 7 High/ daily R2). A break above the last, the major could test 110.75 (20-DMA). While to the downside, the immediate support is seen at 109.13/109 (1h 200-SMA/ round number) and below that at 108.73 (1h 100-SMA).
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