13 Jan 2015
USD/JPY regains 118.50
FXStreet (Edinburgh) - The greenback is now resuming its upside vs. its Japanese counterpart on Tuesday, reclaiming the mid 118.00s after bottoming out near 117.40 overnight.
USD/JPY focus on US data
While some analysts pointing that the USD rally appears overdone at the moment, the FX community will focus on the slew of key data releases in the US economy this week, with consumer prices due on Friday growing in importance after the lower than expected CPI figures in the previous month and against the backdrop of declining crude oil prices. Strategists at BTMU commented “USD/JPY may find it increasingly difficult to extend and sustain gains beyond the 120-level given that the yen is already significantly undervalued”.
USD/JPY relevant levels
At the moment the pair is up 0.13% at 118.51 with the next hurdle at 118.85 (high Jan.13) ahead of 119.24 (Tenkan Sen) and finally 119.88 (high Jan.9). On the downside, a break below 117.74 (low Jan.13) would target the psychological level at 117.00 en route to 116.30 (low Dec.17 2014).
USD/JPY focus on US data
While some analysts pointing that the USD rally appears overdone at the moment, the FX community will focus on the slew of key data releases in the US economy this week, with consumer prices due on Friday growing in importance after the lower than expected CPI figures in the previous month and against the backdrop of declining crude oil prices. Strategists at BTMU commented “USD/JPY may find it increasingly difficult to extend and sustain gains beyond the 120-level given that the yen is already significantly undervalued”.
USD/JPY relevant levels
At the moment the pair is up 0.13% at 118.51 with the next hurdle at 118.85 (high Jan.13) ahead of 119.24 (Tenkan Sen) and finally 119.88 (high Jan.9). On the downside, a break below 117.74 (low Jan.13) would target the psychological level at 117.00 en route to 116.30 (low Dec.17 2014).