USD/JPY rises to test daily highs as risk sentiment turns

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - USD/JPY climbed to retest daily highs during the American session, but found resistance at the 200-hour SMA and lost momentum.

    The dollar gathered pace against the yen as risk sentiment switched to positive again, with US stocks advancing and oil recovering ground. USD/JPY climbed more than 70 pips during the last minutes, and reached a high of 118.16 (200-hour SMA) before retreating slightly. At time of writing, the pair is trading at 118.00, up 0.29% on the day.

    In the absence of first-tier data, market sentiment continues to drive trading. Earlier in the session, data showed US initial jobless claims rose to 284K last week, while import and export prices fell in line with expectations, but indicators had little impact on the greenback.

    USD/JPY levels to watch

    As for technical levels, USD/JPY could find next resistances at 118.16 (200-hour SMA), 118.33/37 (10-day SMA/Jan 13 high), 118.82 (Jan 8 high) and 119.15 (Jan 6 high). On the flip side, supports are seen at 117.28 (Jan 14 low), 116.68 (Jan 11 low) and 116.16 (Aug 24 low).
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