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USD/JPY stretches down past 119.75/80 support

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 22, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Bali) - USD/JPY remains under pressure, with the rate now breaking a key support area at 119.75/80, following a slow grind lower along a quiet Tokyo session, amid broad-based USD weakness, as traders adjust positions ahead of theECB policy meeting.

    Nikkei 225 drags USD/JPY lower

    The heaviness in Yen crosses comes as the Nikkei 225 comes off recent day highs (near its flat line for the day at one stage), to currently trade down by 0.55%, with strong support coming in at 18,435/40, area that should see some decent bids and provide some relief for USD/JPY - at least slowdown the decline -. Today's Nikkei 225 sentiment took a turn for the worse after Moody's rating agency stated that a further slowdown in the Chinese economy is expected given weak indicators.

    USD/JPY key levels

    The key support is now 119.75/80; if sellers are able to hold price below this level, which happens to coincides with today's S1 and Wednesday's low, the next area of notable buying interest is not found until 119.55/60 - multiple highs Oct19/20 + Daily S2 - ahead of 119.40 - Daily S3 - and 119.20 - ATR 14 limit -. On the upside, if acceptance above 119.80 is seen again, the most logical target next would be a retest of 120.00/10.
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