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USD/JPY swings back above 113 as Nikkei pares losses

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    USD/JPY halted its downslide and bounced-off daily S2 as the bulls found respite from the recovery seen in the Asian equities, particularly Nikkei.

    USD/JPY retakes 20-DMA at 113.32?

    The major clung to the key support at 112.75 region and embarked upon the recovery mode thereon amid a minor rebound seen in the Asian equities as dust settles over China’s trade data At the time of writing, USD/JPY trims losses to trade at 113.16, still down -0.26%

    The traders appear to have moved past a tad better Japanese final Q4 GDP data as the focus now remains on the sentiment persisting in the markets. Earlier today, Japan’s Q4 GDP revision revealed that the economy contracted 0.3% in Q4 2015 as compared to the previous estimate of -0.4%.

    Meanwhile, the upside may find some resistance as awful Chinese trade numbers will continue to weigh on investors’ mind and keep the demand for the yen underpinned as we progress towards a fairly light macro calendar this Tuesday.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 114 (round number). A break above the last, the major could test 114.28/58 (Mar 3 & 2 High). While to the downside, the immediate support is seen at 112.75/71 (daily low & S2) and below that at 112.54/50 (Feb 26 Low/ psychological levels).
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