USD/JPY testing 100-DMA to the upside

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 15, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The US dollar keeps its overnight recovery mode intact against its Japanese peer stepping into Tokyo markets, with USD/JPY testing 100-DMA at 121.11.

    USD/JPY trades well above daily pivot at 120.90

    Currently, the USD/JPY pair trades modestly flat at 121.10, struggling to extend beyond 121.11/13 region, where the 100-DMA intersects. The major tries hard to extend the ongoing recovery from 120.35 lows and looks for a break beyond 5-DMA placed at 121.18 for further upside.

    The USD/JPY’s corrective gains lost appears to lose traction amid mixed trading on the Asian indices, with the Japanese Nikkei down -0.33% and Australia’s ASX advancing 0.27% so far. In the US last session, the pair found good support at 120.35 levels and jumped-off higher thereon after the US stocks turned positive tracking a tepid-bounce in oil prices.

    In the day ahead, the major will continue to get influenced by the broader market sentiment ahead of the key US inflation report, which will be the last data before Wednesday’s FOMC decision on the interest rates.

    USD/JPY Technical levels to watch

    The prices head higher and find the immediate resistance at 121.18/24 (5-DMA/ 1h 50-SMA). A break above the last, the major could test 121.62 (1h 100-SMA). While to the downside, the immediate support is located at 120.90 (daily pivot) below which 120.57 (Dec 11 Low) would be tested.

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