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3 Aug 2015
USD/JPY strongly bid near 124.20
FXStreet (Mumbai) - The US dollar extends gains versus the Japanese currency in the mid-European trades, now lifting USD/JPY to fresh session highs beyond 124 barrier, as traders lock-in in gains on their USD shorts after the recent weakness heading into a heavy US economic calendar in the week ahead.
USD/JPY eyes 124.50
Currently, the USD/JPY pair trades 0.26% higher at fresh session highs of 124.20, finally holding onto gains above 124 handle. USD/JPY extends its recovery mode after dipping to 123.50 levels on Friday after the ECI index showed a poor increase in US wages during the second quarter, posting only a 0.2% hike, while the first quarter saw a 0.7% jump.
Also, markets prefer to square-off their USD shorts ahead of key US economic releases including the Non-farm payrolls data which is likely to have major impacts on the buck.
Yen was hit earlier in Asia after Japanese manufacturing PMI came out below estimates. Japan Final Manufacturing Purchasing Manager Index down to 51.2 in July from previous 51.4.
We have a crucial week ahead in terms of key US economic releases while BOJ’s monetary policy statement will also remain in focus. Later in the day ahead, traders now turn their attention towards US Core PCE index and ISM manufacturing PMI for further momentum on the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located 124.50 (July 21 High) levels and above which it could extend gains 124.75 (June 9 High) levels. To the downside immediate support might be located at 123.73 (July 21 Low) below that at 123.50 (July 31 Low) levels.
USD/JPY eyes 124.50
Currently, the USD/JPY pair trades 0.26% higher at fresh session highs of 124.20, finally holding onto gains above 124 handle. USD/JPY extends its recovery mode after dipping to 123.50 levels on Friday after the ECI index showed a poor increase in US wages during the second quarter, posting only a 0.2% hike, while the first quarter saw a 0.7% jump.
Also, markets prefer to square-off their USD shorts ahead of key US economic releases including the Non-farm payrolls data which is likely to have major impacts on the buck.
Yen was hit earlier in Asia after Japanese manufacturing PMI came out below estimates. Japan Final Manufacturing Purchasing Manager Index down to 51.2 in July from previous 51.4.
We have a crucial week ahead in terms of key US economic releases while BOJ’s monetary policy statement will also remain in focus. Later in the day ahead, traders now turn their attention towards US Core PCE index and ISM manufacturing PMI for further momentum on the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located 124.50 (July 21 High) levels and above which it could extend gains 124.75 (June 9 High) levels. To the downside immediate support might be located at 123.73 (July 21 Low) below that at 123.50 (July 31 Low) levels.