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USD/JPY recovery stalls near 119.75 on BOJ’s Kuroda

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The USD/JPY pair found fresh bids near the mid-point of 119 handle and the prices are seen making minor-recovery attempts on the back of slightly dovish comments from the BOJ Governor Kuroda.

    USD/JPY back around 50-DMA at 119.66

    The Japanese currency trimmed gains against its American counterpart in the mid-Asian trades, after the BOJ Governor Kuroda crossed the wires, delivering pretty dovish comments, while showing concerns over the recent global headwinds and its impact on the economy’s inflation outlook. At the time of writing, the major trades -0.27% lower at 119.63, halting its recovery from 119.47 lows, near 119.75 region.

    However, the recovery in USD/JPY looks fragile as the persisting risk-aversion across the financial markets is likely to keep the safe-haven bids for the yen intact. Meanwhile, Japan Nikkei drops -3.14%, while the Australian ASX 200 sinks -2.22%. China’s SHCOMP is down -1.24%.

    Later today, the US ADP jobs report will remain in focus; besides the oil price action will continue to lead the financial markets.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 119.92/120 (daily high/ round number). A break above the last, the major could test 120.22/59 (1h 100-SMA/ 5-DMA). While to the downside, the immediate support is seen at 119.34/29 (daily S1/ 1h 200-SMA) and below that at 119/118.84 (psychological levels/ daily S2).
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