USD/JPY holds above 117.50 levels

FXStreet (Mumbai) - The US dollar trimmed previous gains versus the Japanese yen from the volatile Asian session and steadies now as markets shrugged off weak worse-than-expected Chinese data and now await US PMI numbers due later in the day.

Stuck at 5-DMA

Currently, the USD/JPY traded at 117.65 levels, up 0.13% on the day, retreating from daily highs previously posted at 117.87 levels. The pair remains elevated as traders now await US PMI data due later today in absence of any data for the pair to be released now. The yen remained pressured as negative Chinese data failed to spur risk-off trading amid thin liquidity.

Meanwhile, diverging policy outlook between the US Fed and the Bank of Japan (BOJ) is likely to underpin USD/JPY.

USD/JPY Technical Levels

To the upside, the next resistance is located at 118 levels and above which it could extend gains 118.47 levels. To the downside immediate support might be located at 117.25 levels, below that at 116.95 levels.

EUR/USD might retest 1.1220 levels – FXStreet

According to FXStreet Editor and Analyst, Omkar Godbole, the EUR/USD pair is likely to breach the channel support at 1.1286 levels and move lower to retest 1.1220 – 1.1240 levels.
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