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1 Sep 2015
USD/JPY attempts a tepid recovery above 120 handle
FXStreet (Mumbai) - The USD/JPY pair halted its downslide near 119.50 levels and swung back above 120 barrier during the European session, as risk-off sentiment slight faded on the back of recovery seen in oil and European stocks.
USD/JPY trades below 10-DMA
Currently, the USD/JPY pair trades -0.93% lower at 120.10, now facing rejection at 120.25 levels on the upside. The major erased partial losses and stages a tepid recovery as market sentiment seems to be improving as oil prices seem to have recovered ground partly while the European indices also pare losses now awaiting fresh cues from the US session ahead.
The yen rose to a five-day high versus the greenback near 119.50 levels earlier this session after persisting China worries sparked renewed risk aversion wave. While the US dollar remains heavily dumped as markets now weigh the China concerns and its potential impact on the Sept Fed rate hike decision.
Later in the week ahead, the major is expected to be highly influenced by the US non-farm payrolls data which may set the tone for Fed interest rate-hikes this year. While manufacturing reports from the US due later today will also provide further momentum.
USD/JPY Technical levels to consider
To the upside, the next resistance is located 121.14 (Today’s High) levels and above which it could extend gains 121.75 (Aug 31 High) levels. To the downside immediate support might be located at 119.54 (Today’s Low) below that at 119 (Psychological levels).
USD/JPY trades below 10-DMA
Currently, the USD/JPY pair trades -0.93% lower at 120.10, now facing rejection at 120.25 levels on the upside. The major erased partial losses and stages a tepid recovery as market sentiment seems to be improving as oil prices seem to have recovered ground partly while the European indices also pare losses now awaiting fresh cues from the US session ahead.
The yen rose to a five-day high versus the greenback near 119.50 levels earlier this session after persisting China worries sparked renewed risk aversion wave. While the US dollar remains heavily dumped as markets now weigh the China concerns and its potential impact on the Sept Fed rate hike decision.
Later in the week ahead, the major is expected to be highly influenced by the US non-farm payrolls data which may set the tone for Fed interest rate-hikes this year. While manufacturing reports from the US due later today will also provide further momentum.
USD/JPY Technical levels to consider
To the upside, the next resistance is located 121.14 (Today’s High) levels and above which it could extend gains 121.75 (Aug 31 High) levels. To the downside immediate support might be located at 119.54 (Today’s Low) below that at 119 (Psychological levels).