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USD/JPY revisits daily lows, exhaustion or caution ahead of US data?

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The bulls appear to lose grip on the USD/JPY pair in the mid-European trades, as traders resort to repositioning ahead of the crucial US data sets due later in the NY session.

    USD/JPY flirts with 119 handle

    Currently, the USD/JPY pair trades 0.09% higher at 119, failing several times to break above 119.20 in the morning trades. The USD/JPY pair trims gains and keeps pushing lower, despite a broadly stronger US dollar, as markets turn cautious and prefer to lock-in gains ahead of another round of key economic releases from the US, which may trigger some volatility.

    While easing risk-on sentiment also seems to spur the safe-haven demand for the Japanese currency, as the major European stocks are currently paring gains. The pan-European benchmark, the Euro Stoxx 50 now trades 0.64% while the DAX gains 0.47%.

    Looking ahead, the dollar-yen pair will continue to track the broader market sentiment with the crucial US prelim consumer sentiment and industrial production data expected to keep the traders busy.

    USD/JPY Technical levels to consider

    The pair wavers around 119 handle eyeing the next resistance located at 119.18 (H1 R1) beyond which 119.38 (hourly 100-SMA) could be tested. Above the last, the pair could climb further to 119.72/74 (10-DMA & hourly 200-SMA). While to the downside immediate support might be located at 118.83/70 (daily lows & pivot), below which 118.22 (daily S1) could be exposed. A breach of the last, the pair could drop to 118.04/118 (Oct 15 Low & round number).
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