USD/JPY re-takes 115, USD back on the bids

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 10, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Fresh bids emerged once again near 114.30 region, now pushing USD/JPY back towards 115 handle mainly on the back renewed buying interest seen around the US dollar against its major rivals.

    USD/JPY: Yen trims gains amid suspected BOJ intervention

    The major is seen making a gradually recovery from near more than one-year lows and now looks to retest 115 handle as the USD bulls jumped back on the bids versus the six major competitors. The US dollar index now trades 0.05% higher at 96.10 levels, recovering from 95.88 daily lows. At time of writing, USD/JPY trades at 114.87, recording a -0.23% loss on the day.

    Earlier on the day, talks over suspected BOJ intervention in the markets, in a bid to halt the yen appreciation, rescued the bulls and sent USD/JPY sharply higher above 115 handle. However, the major failed to sustain at higher levels and returned to multi-month lows as the Japanese stocks accelerate declines, with the Nikkei falling to the lowest levels since Oct 2014.

    Attention now remains on the Fed Chair Yellen’s testimony due later today amid a lack of fresh economic news for the major.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 115.03/ 115.22 (daily pivot & high). A break above the last, the major could test 115.91/116 (5-DMA/ round number). While to the downside, the immediate support is seen at 114.26/24 (Daily & Feb 9 High) and below that at 114/ 113.80 (round number/ Nov 2014 levels).
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