USD/JPY trims daily losses but remains near 2015 lows

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 20, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - USD/JPY recovered from fresh 1-year lows sub-116.00, but lost momentum ahead of the 117 mark and entered a consolidation phase, as investors’ attention turns to the US CPI data.

    USD/JPY bottomed out at 115.96, as the yen benefited from the switch back to risk-off in market sentiment and remains among the best performers across the board, although the pair found strong support ahead of its 2015 low and recovered a full cent. With the upside capped by 116.95, the pair is currently trading at 116.65, still 0.81% below its opening price.

    Next on tap, US will publish consumer inflation numbers for December, with expectations pointing to a flat reading for the headline and a 0.2% increase for the core. YoY prices are expected to grow 0.8% and 2.1% respectively. At the same time, housing starts data will be released.

    USD/JPY levels to watch

    In terms of technical levels, next supports are seen at 115.96 (Jan 20 low), 115.84 (2015 low, Jan 16). Once below this latter, USD/JPY will be trading at its lowest since Dec 2014. Next support stands at 115.55 (Dec 16 2014 low). On the other hand, resistances could be found at 117.00 (psychological level), 117.67 (Jan 19 high), 118.37 (Jan 13 high) and 118.78/82 (20-day SMA/Jan 8 high).
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