USD/JPY slips back below 123.00

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The dollar has surrendered part of its earlier gains vs. the Japanese currency on Monday, sending USD/JPY back to sub-123.00 levels.

    USD/JPY lower post-US data

    The pair lost some upside momentum after the US Empire State index missed expectations for the current month, coming in at -10.74 vs. -5.0 anticipated. Spot has managed to rebound from overnight troughs in the 122.30 area after the prevailing risk aversion boosted the demand for the safe haven JPY in response to Paris attacks on Friday.

    Data wise, Japanese GDP figures have contracted 0.8% during the third quarter, prompting the economy to enter into technical recession while fuelling expectations of further easing by the BoJ.

    USD/JPY levels to consider

    At the moment the pair is up 0.25% at 122.96 facing the next hurdle at 123.60 (high Nov.9) followed by 124.58 (high Jul.30) and finally 125.29 (high Aug.12). On the other hand, a breakdown of 121.74 (100-day sma) would aim for 120.87 (50% Fibo of 125.28-116.46) and then 120.62 (55-day sma).
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