USD/JPY: offered tone gathering pace, 20-DMA eyed?

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The overnight recovery in the USD/JPY pair met fresh supply near 113.75 region over the last, now pushing the rate towards the midpoint of 113 handle at Tokyo.

    USD/JPY making lower tops on daily charts

    The dollar-yen pair wiped-out gains and keeps offers as the Japanese traders hit their desks and assess the latest negative economic news from the US released yesterday. The headline ISM services PMI topped estimates, although the employment index dipped, while the factory orders as well as jobless claims, both disappointed markets. At the time of writing, USD/JPY moves slightly off daily lows and trades at 113.63, down -0.05% on the day.

    The major came under mild selling pressure in early trades after the mixed sentiment seen on the Asian equities, with the Japanese Nikkei down -0.25% and Australia’s ASX 0.15% higher.

    Markets now await NOJ Governor Kuroda’s multiple appearance in the parliament today ahead of the big risk event for the major today, the non-farm payrolls data.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 113.86/114 (1h 50-SMA/ round number). A break above the last, the major could test 114.28/58 (Mar 3 & 2 High). While to the downside, the immediate support is seen at 113.49/28 (1h 100-SMA/ Mar 2 low) and below that at 113.17 (10-DMA).
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