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USD/JPY rejected at 117, reverts to 2-week lows

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The recovery in the USD/JPY pair from two-week lows faltered just a thread-line short of 117 handle and the prices fell back in the red towards 116.50 levels.

    USD/JPY retests near two-week lows

    The major failed to take out 117 handle and ran through fresh offers, knocking-off the pair to fresh session lows of 116.56, almost two-week lows. At the time of writing, the major trades -0.11% lower at 116.65 levels.

    The dollar-yen pair witnessed an almost 50-pips downward spike over the last hours, as the risk-off trades picked-up pace following the extension of the sell-off in the Japanese stocks. The Japanese benchmark, the Nikkei 225 drops -2.14% to 16,670 versus -1.30% previous.

    Focus now remains on the US NFP report for fresh momentum on the US dollar, with wide expectations that Jan employment numbers will disappoint markets and add further to the fading hopes of Fed rate rises this year.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 117.15/20 (1h 20-SMA/ daily pivot). A break above the last, the major could test 117.90/118 (daily R1/ round number). While to the downside, the immediate support is seen at 116.50 (Feb 4 Low) and below that at 116/115.96 (psychological levels/ Jan 20 Low).
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