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22 Dec 2015
USD/JPY finds support in uptick in US core PCE
FXStreet (Mumbai) - The upward revision of the US core PCE appears to have kept the USD demand intact, ensuring the USD/JPY pair remains around 121.00 handle.
Sustains above 50% Fibo level
The pair trades above 120.97 (50% of 125.856-116.082). The European stocks dropped despite a firm start and thus kept the JPY bid. However, the losses in the USD/JPY pair remained restricted around 121.00 levels on account of the upward revision of the core PCE to 1.3% y/y from 1.2%.
Ahead in the day, the action in the US stock markets could have a major influence on the USD/JPY pair. Meanwhile, the US existing home sales release could also have an impact on the pair.
USD/JPY Technical Levels
At 121.02, the immediate resistance is seen at 121.54 (hourly 200-MA), above which the gains could be extended to 121.80 (50-DMA). On the other hand, a break below 120.84 (daily low and previous day’s low) would expose 120.57 (Dec 14 low).
Sustains above 50% Fibo level
The pair trades above 120.97 (50% of 125.856-116.082). The European stocks dropped despite a firm start and thus kept the JPY bid. However, the losses in the USD/JPY pair remained restricted around 121.00 levels on account of the upward revision of the core PCE to 1.3% y/y from 1.2%.
Ahead in the day, the action in the US stock markets could have a major influence on the USD/JPY pair. Meanwhile, the US existing home sales release could also have an impact on the pair.
USD/JPY Technical Levels
At 121.02, the immediate resistance is seen at 121.54 (hourly 200-MA), above which the gains could be extended to 121.80 (50-DMA). On the other hand, a break below 120.84 (daily low and previous day’s low) would expose 120.57 (Dec 14 low).