USD/JPY trades at 10-DMA

FXStreet (Mumbai) - The USD/JPY pair finds itself stuck around 10-DMA level located at 118.00 even though the labor department in the US reported a solid weekly jobs data.

Exhaustion around 118.00 levels

The pair has repeatedly failed to extend gains above 118.00 levels since the previous session. Moreover, the short term average resistance in the 117.80-118.00 region, coupled with the weakness in the Treasury yields has effectively capped gains in the pair around 118.00 levels.

Moreover, the pair is struggling to break above the same even after the labor department data showed initial jobless claims fell 43,000 to 265,000 in the week that ended Jan. 24, hitting the lowest tally in 14 years.

USD/JPY Technical Levels

The immediate resistance is located at 118.25, above which gains could be extended to 118.64 levels. On the flip side, a break below 117.60 shall see the pair re-test 117.24 levels.

US rate hike likely to come later this year – TDS

Shaun Osborne, Chief FX Strategist at TD Securities, views the Fed’s statement to be USD supportive, expecting a rate hike likely during later this year.
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