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USD/JPY regains 113, on its way to daily highs?

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    A sudden bid-wave caught the USD/JPY pair in last hours, sending the major back above 113 handle as the black gold as well as the Asian markets have embarked upon the recovery mode.

    USD/JPY finds support ahead of 112.70 region

    The oil prices stage a minor-recovery heading into early Europe and lift the overall market sentiment, rescuing the bulls from below 113 handle. At the time of writing, USD/JPY drops 0.19% to trade well above 113 handle, near 113.10.

    The major bounced-off lows near 112.70 region and extended the recovery seen in the last hours above 113 levels, after the Japanese stocks pared half its slide towards closed and brought relief to the markets. The Nikkei closed down -1.42% versus -2.25% seen previously. Meanwhile, both crude benchmarks are also trimming losses, now losing -50% versus almost -2% earlier.

    Meanwhile, markets digest the headlines from Japan’s PM Abe as well as the latest survey published by Nikkei, citing further BOJ easing in the first half this year. Data-wise, the US CPI figures will grab a lot of attention in the NY session.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 113.37/ 38 (1h 20-SMA/ daily high). A break above the last, the major could test 113.57/79 (Daily pivot/ 5-DMA). While to the downside, the immediate support is seen at 112.72 (daily low) and below that at 112 (round number).
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