USD/JPY: Post BOJ recovery stalls at 20-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 7, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The US dollar tries to recover lost ground and trimmed losses versus the Japanese in early moves, with USD/JPY struggling to extend further beyond 120 handle.

    USD/JPY regains 120 handle

    Currently, the USD/JPY pair trades -0.09% at 120.11, recovering from fresh session lows reached at 119.80 in mid-Asia. The major found fresh bids near 119.90-95 band and attempted a weak recovery on the 120 handle, heading towards the key 20-DMA barrier located at 120.16.

    The yen bull are seen fighting to retain control and keeps the USD/JPY restricted around the hourly 100 & 200-SMA confluence placed at 120.10 levels. The yen remains bid across the board after the BOJ made no changes to its monetary policy settings and reiterated the rhetoric.

    Meanwhile, fresh moves on the pair could be expected from the BOJ press conference and the Governor Kuroda’s speech.

    USD/JPY Technical levels to consider

    To the upside, the next resistance is located at 120.16 (20-DMA), beyond which 120.56-57 (Oct 5 & 6 Highs) levels could be tested. A breach of the last, the pair could climb further for a test of 50-DMA located at 120.96. To the downside immediate support might be located at 119.22-21 (Sept 29 & 24 Lows). A breach of the last, the pair could drop to 118.83 (Sept 8 Low) levels.
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