USD/JPY weaker, stabilizing around 117.50

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Edinburgh) - The Japanese currency remains on the right footing at the beginning of the year, now taking USD/JPY to the current consolidation around the mid-117.00s.

    USD/JPY propped up by the risk aversion

    The re-emergence of the risk-off trade during the first half of the week has been supporting the solid demand for the Japanese safe haven, prompting the pair to drop from Monday’s peaks near 120.50. The yen has gained further ground today following another depreciation of the Chinese Yuan and the subsequent turmoil in the Asian markets, extending the consequences to the European and US equity markets.

    Ahead in the day, US Initial Claims are due ahead of tomorrow’s key Non-farm Payrolls, with consensus gyrating around 200K jobs during December.

    USD/JPY levels to consider

    As of writing the pair is retreating 0.80% at 117.52 facing the next support at 117.00 (psychological level) followed by 116.46 (low Aug.24) and then 115.82 (low Jan.16 2015). On the flip side, a breakout of 120.77 (high Dec.30) would open the door to 120.95 (100-day sma) and finally 121.68 (200-day sma).
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