26 Jan 2015
USD/JPY: recovery capped by 118.50
FXStreet (Córdoba) - USD/JPY has climbed over a full cent throughout the day and filled the weekly opening gap as the yen weakened across the board as markets shrugged off Greek election results.
USD/JPY fell to a low of 117.25 early during the Asian session but found buyers and rallied to a high of 118.47. However, with the bounce capped by the 118.50 zone, the pair pulled back to currently trade around 118.15, still up 0.31% on the day.
From a wider perspective however, USD/JPY has been oscillating in a 200-pip range since mid-January, after being rejected by a 1-month low at the 115.80 support zone.
USD/JPY technical outlook
“Short term, the technical picture favors the upside, as per indicators heading strongly up above their midlines, and the price developing above moving averages, with the 100 SMA offering intraday support at 118.10”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart however, the technical picture remains neutral, with indicators hovering around their midlines. The pair needs to extend either above 118.80 or break below 117.00 to gain some directional strength”.
USD/JPY fell to a low of 117.25 early during the Asian session but found buyers and rallied to a high of 118.47. However, with the bounce capped by the 118.50 zone, the pair pulled back to currently trade around 118.15, still up 0.31% on the day.
From a wider perspective however, USD/JPY has been oscillating in a 200-pip range since mid-January, after being rejected by a 1-month low at the 115.80 support zone.
USD/JPY technical outlook
“Short term, the technical picture favors the upside, as per indicators heading strongly up above their midlines, and the price developing above moving averages, with the 100 SMA offering intraday support at 118.10”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart however, the technical picture remains neutral, with indicators hovering around their midlines. The pair needs to extend either above 118.80 or break below 117.00 to gain some directional strength”.