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USD/JPY off multi-month highs, near 200-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 5, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The Japanese yen remains on the bids versus the US dollar heading into the early European morning, with USD/JPY posing minor correction after the recent strength.

    USD/JPY fails near 100-DMA

    Currently, the USD/JPY pair trades -0.09% lower at 121.44, having found good support near 200-DMA located at 121.42. The USD/JPY pair retreats from three-month highs and extends the corrective slight, having met fresh supply near 100-DMA at 121.60.

    The major failed to garner support from the improved risk sentiment, as reflected by solid performance on the Asian equities amid broad based US dollar weakness. Markets resorted to lock-in gains after the sharp rise seen on Wednesday after Fed’s Yellen reinforced Dec rite hike beliefs into markets.

    Looking ahead, markets now await the European open for fresh cues on the pair, while the US unemployment claims will be reported in an otherwise data-light US trading calendar.

    USD/JPY Technical levels to watch

    The prices keep range near 200-DMA at 121.42, beyond which doors open for a test of 121.58/60 (100-DMA/ daily highs) and from there to 121.71/73 (Nov 4 & Aug 28 High). While to the downside, the immediate support lies at 121/120.98 (round number/ Nov 4 low), below which 120.57 (Nov 3 Low) would be tested. A failure to breach the last, the prices could fall further towards 120 handle.
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