USD/JPY trims gains, retreats to 200-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 11, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The bid tone around the USD/JPY pair appears to ease a bit heading into early Europe, as markets consolidate heavy gains ahead of the European open.

    USD/JPY back below 122 handle

    Currently, the USD/JPY pair trades 0.30% higher at 121.95, retracing from session highs posted at 122.23 in mid-Asia. The major recedes gains mirroring the moves seen in the US dollar against its major peers.

    Moreover, the yen continues to lose ground on divergent monetary policy paths, with economists expecting BOJ to do more easing and the Japanese currency to weakness in the H1 2016. While the Fed remains on track to raise rates next week at its policy meeting on Dec 16.

    Later today, a flurry of crucial macro data is lined up for release which may have some impact on the USD moves, eventually influencing USD/JPY. Besides, sentiment on the European and US equities will also play a crucial role.

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    USD/JPY Technical levels to watch

    The prices trade turns lower and find immediate support at 121.18 (100-DMA) below which 121.07 (Dec 9 Low) would be tested. While to the upside, the immediate resistance is now placed at 122.27/30 (daily R1/ 5-DMA). A break above the last, the major could test 122.50/66 (1h 100-SMA/ 10-DMA).
    For more information, read our latest forex news.

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