10 Mar 2015
USD/JPY: Yen tumbles to fresh 3-month lows
FXStreet (Mumbai) - USD/JPY continues its upward trajectory and inches towards highest levels since Dec 2014, as a firming US dollar continues to be the main driver for the major.
USD/JPY supported above 121 handle
Currently, the USD/JPY trades higher by 0.42% at 121.67 levels, heading towards fresh three month highs posted at 121.75 levels some time ago. USD/JPY extends gains largely on the back of a stronger greenback across the board which sits at fresh twelve year peak. Moreover, the yen to three month lows against the US dollar following on from yesterday's softer GDP growth reading and comments from Bank of Japan (BOJ) officials.
Revised GDP data released a day ago showed the world's third-biggest economy growing just 0.4% last quarter, weaker than the preliminary reading of 0.6% growth. Meanwhile, BoJ deputy governor Nakaso noted that the "effects of a weaker yen on boosting export volume is finally coming into play," which possibly offered further downside for the local currency.
In the week ahead, traders now focus on Japanese machine orders data and retail sales numbers from the US for further momentum on the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located at 121.86 (Dec 2014 High) levels and above which it could extend gains 122 levels. To the downside immediate support might be located at 120.91 (5-DMA) levels, below that at 120.35 (10-DMA) levels.
USD/JPY supported above 121 handle
Currently, the USD/JPY trades higher by 0.42% at 121.67 levels, heading towards fresh three month highs posted at 121.75 levels some time ago. USD/JPY extends gains largely on the back of a stronger greenback across the board which sits at fresh twelve year peak. Moreover, the yen to three month lows against the US dollar following on from yesterday's softer GDP growth reading and comments from Bank of Japan (BOJ) officials.
Revised GDP data released a day ago showed the world's third-biggest economy growing just 0.4% last quarter, weaker than the preliminary reading of 0.6% growth. Meanwhile, BoJ deputy governor Nakaso noted that the "effects of a weaker yen on boosting export volume is finally coming into play," which possibly offered further downside for the local currency.
In the week ahead, traders now focus on Japanese machine orders data and retail sales numbers from the US for further momentum on the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located at 121.86 (Dec 2014 High) levels and above which it could extend gains 122 levels. To the downside immediate support might be located at 120.91 (5-DMA) levels, below that at 120.35 (10-DMA) levels.