8 May 2015
USD/JPY consolidates below 120
FXStreet (Mumbai) - The US dollar remains elevated versus the Japanese yen in Asia, keeping USD/JPY sidelined around 119.90, largely as the US dollar extends its rise from the previous session versus its major peers supported by upbeat US jobs data. While markets now eagerly await NFP data for further direction on the major.
USD/JPY supported at 119.71
Currently, the USD/JPY pair trades 0.15% at 119.92, having posting day’s high at 119.98 and day’s low at 119.71. The USD/JPY pair defends gains as the US dollar continues its upbeat momentum, bouncing from weekly lows in the previous session after better than expected US jobless claims release. The initial jobless claims showed another strong reading, slightly rising to 265,000 in the week ending May 2, after a 15-year low at 262,000 the week before.
Meanwhile, the US dollar index which measures the relative strength of the greenback versus six major currencies now trades at 94.89, up 0.17% on the day.
Moreover, yen also remains undermined versus the greenback after Bank of Japan’s (BO) minutes revealed that QQE is likely to extend until the central bank achieves its 2% price target.
Minutes stated, "Quantitative and qualitative monetary easing (QQE) has been exerting its intended effects, and the Bank will continue with QQE, aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining that target in a stable manner."
Looking ahead, markets now turn their focus towards today’s critical non-farm payrolls figures. NFP is expected to post a 230,000 gain, along with the unemployment rate, which is predicted to soften to 5.4% from 5.5%.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120 levels and above which it could extend gains 120.30 (May 1 High) levels. To the downside immediate support might be located at 119.71 (Today’s Low) below that at 119.18 (May 6 Low) levels.
USD/JPY supported at 119.71
Currently, the USD/JPY pair trades 0.15% at 119.92, having posting day’s high at 119.98 and day’s low at 119.71. The USD/JPY pair defends gains as the US dollar continues its upbeat momentum, bouncing from weekly lows in the previous session after better than expected US jobless claims release. The initial jobless claims showed another strong reading, slightly rising to 265,000 in the week ending May 2, after a 15-year low at 262,000 the week before.
Meanwhile, the US dollar index which measures the relative strength of the greenback versus six major currencies now trades at 94.89, up 0.17% on the day.
Moreover, yen also remains undermined versus the greenback after Bank of Japan’s (BO) minutes revealed that QQE is likely to extend until the central bank achieves its 2% price target.
Minutes stated, "Quantitative and qualitative monetary easing (QQE) has been exerting its intended effects, and the Bank will continue with QQE, aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining that target in a stable manner."
Looking ahead, markets now turn their focus towards today’s critical non-farm payrolls figures. NFP is expected to post a 230,000 gain, along with the unemployment rate, which is predicted to soften to 5.4% from 5.5%.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120 levels and above which it could extend gains 120.30 (May 1 High) levels. To the downside immediate support might be located at 119.71 (Today’s Low) below that at 119.18 (May 6 Low) levels.