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USD/JPY: Yen weakest in Asia, looks to test 114

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 10, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The bulls tightened their grip over the last hour, now pushing the USD/JPY pair further towards 114 handle, on the back of a solid rebound staged by the Japanese stocks.

    USD/JPY finds fresh bids above 10-DMA

    The ongoing recovery in USD/JPY from ahead of 113 barrier found fresh legs after the Japanese equities regained momentum and bolted higher, lifting the overall sentiment. At the time of writing, USD/JPY advances further to 113.77, hovering close to fresh three-day highs of 113.81, up 0.38% so far. While the Japanese benchmark index, the Nikkei rallies +1.40% and nears 17k mark.

    The yen ran through fresh offers against its USD counterpart on the back of improved risk sentiment after the Chinese CPI figures bettered expectations and cooled-off worries over the health of the Chinese economy somewhat.

    Markets now await fresh impetus from the upcoming ECB meeting, which is expected to spur huge market volatility and set next direction for the major as the central bank’s decision will have significant impact on the greenback.

    USD/JPY Technical levels to watch

    In terms of technicals, the immediate resistance is located at 114 (round number). A break above the last, the major could test 114.26/28 (Mar 4 & 3 High). While to the downside, the immediate support is seen at 112.94/84 (1h 20 & 50-SMA) and below that at 112.44/23 (Mar 8 & 9 Low).
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