26 Mar 2015
USD/JPY: Yen hits fresh 4-week highs above 118.80
FXStreet (Mumbai) - The yen continues its upside momentum against the US dollar, dragging USD/JPY to fresh four week lows, as the escalation of the situation between Yemen and Saudi Arabia boosts the safe-haven bids in yen while traders await Japan’s CPI figures due tomorrow.
USD/JPY drops from 118.99
Currently, the USD/JPY trades lower by -0.53% at fresh monthly lows posted at 118.82 levels few minutes. The yen extends its upward moves; having jumped more than 60 pips to its highest since the end of February as flight to safety sentiment persists on the back of reports that Saudi Arabia initiated bombing targets on Yemen which raised the safe-haven appeal in yen.
Moreover, USD/JPY remains pressured as Chicago Fed President Evans’ dovish comments along with the disappointing durable goods orders report released in the US last session continue to weigh on the greenback. The US dollar index which measures the relative strength of the greenback against a basket of six major currencies is lower by -0.18% at 96.91 levels.
Meanwhile, traders now turn their attention towards a set of Japanese macro data to be released tomorrow followed by the crucial US GDP numbers for further cues on the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.52 (Today’s High) levels and above which it could extend gains 119.85 (March 25 High) levels. To the downside immediate support might be located at 118.65 levels, below that at 118.27 levels.
USD/JPY drops from 118.99
Currently, the USD/JPY trades lower by -0.53% at fresh monthly lows posted at 118.82 levels few minutes. The yen extends its upward moves; having jumped more than 60 pips to its highest since the end of February as flight to safety sentiment persists on the back of reports that Saudi Arabia initiated bombing targets on Yemen which raised the safe-haven appeal in yen.
Moreover, USD/JPY remains pressured as Chicago Fed President Evans’ dovish comments along with the disappointing durable goods orders report released in the US last session continue to weigh on the greenback. The US dollar index which measures the relative strength of the greenback against a basket of six major currencies is lower by -0.18% at 96.91 levels.
Meanwhile, traders now turn their attention towards a set of Japanese macro data to be released tomorrow followed by the crucial US GDP numbers for further cues on the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.52 (Today’s High) levels and above which it could extend gains 119.85 (March 25 High) levels. To the downside immediate support might be located at 118.65 levels, below that at 118.27 levels.