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USD/JPY: Yen strengthens on risk-off, tests 122.50

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 24, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The bid tone on the JPY continue to strengthen post-European open, knocking-off USD/JPY to fresh weekly lows below 20-DMA.

    Yen strengthens on risk-off

    Currently, the USD/JPY pair trades -0.21% lower at 122.59, hovering close to fresh weekly lows struck at 122.54 last minutes. A renewed bout of buying interest was seen around the JPY after the European stocks had a softer start.

    While news of a Turkish plane crash in Syria further fuelled geo-political worries in the Middle-East and towed along risk-aversion in markets, boosting the safe-haven bids for the yen.

    Moreover, the extension of the broad based US dollar correction in Europe also added to the renewed weakness in USD/JPY. The USD index drops -0.15% to 99.68 levels.

    Looking ahead, the major will continue to track the broader market sentiment amid the latest Middle-East news. While the US prelim GDP report is expected to have significant impact on the pair.

    USD/JPY Technical levels to watch

    The prices trade below 20-DMA and finds immediate support at 122.20 (Nov 16 Low) below which 121.68 (200-DMA) would be tested. To the topside, the immediate resistance is located at 122.83 (5-DMA). A break above the last, the major could test 123 (round number).
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