USD/JPY recovers to 5-DMA, fresh bids emerge at 1h 50-MA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 26, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The USD/JPY pair is seen catching a fresh bid tone in early Europe, recovering from session lows and now heading towards 123 handle.

    USD/JPY eyes 20-DMA at 122.80

    Currently, the USD/JPY pair trades -0.07% lower at 122.69, recovering from fresh session lows of 122.55, where hourly 50-SMA lie. The major stalled its corrective slide and trims losses, having run through fresh bids near the mid-point of 122 handle.

    The USD/JPY pair poses minor recovery and re-attempts to take out 20-DMA at 122.80, as the USD bulls jumped back on the bids against its major rivals after correcting lower in Asia. The greenback regained lost momentum as the European traders hit their desks, and digest the latest streak of upbeat US fundamentals, signalling that a Dec Fed lift-off is a done deal.

    While the yen bulls continue to fight control and defends mild gains in anticipation of a better Tokyo the National CPI print due tomorrow. Tokyo consumer prices are seen improving in Oct while the National CPI is expected to remain unchanged from previous -0.1%.

    Looking ahead, broad based US dollar strength is expected to keep the downside cushioned in the major amid a data-light trading session.

    USD/JPY Technical levels to watch

    The prices trade near session lows and finds immediate support at 122.20 (Nov 16 Low) below which 121.71 (200-DMA) would be tested. To the topside, the immediate resistance is located at 122.71/75 (5-DMA/1h 100-SMA). A break above the last, the major could test 122.96 (1h 200-SMA).
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