9 Jul 2015
USD/JPY strongly bid near 121.50 ahead of Europe open
FXStreet (Mumbai) - The US dollar keeps its recovery intact in the late-Asian session, further pushing USD/JPY to fresh session highs. The major continues to remain support as generalized risk-off environment seems to have eased, reducing the demand for yen as a safe-haven.
USD/JPY extends from 121.09
Currently, the USD/JPY pair trades 0.57% higher at fresh session highs at 121.41, recovering from day’s low reached at 120.58 in early moves. The USD/JPY pair extends its recovery path from two-month lows as positive sentiment surrounding China with stocks rebounding and rising price pressures seems to have calmed fears of a Chinese economy slowdown, thereby boosting risk-appetite across the board.
Moreover, traders resorted to locking-in gains on the USD shorts after the major was heavily offered on Wednesday, which also added to the strengthening USD/JPY.
USD/JPY witnessed nearly 200 pips fall on Wednesday after the Japanese currency benefited from its traditional safe-haven status, as China and Greece add to global risk aversion across the fx space.
The major printed fresh 2-month lows at 120.42 in overnight trades as markets continue to digest FOMC minutes which revealed that Fed appeared less eager to start hiking policy in light of possible lingering Q1 softness and potential weakness from abroad that could spill over to the US.
USD/JPY Technical Levels
To the upside, the next resistance is located 121.78 (May 25 High) levels and above which it could extend gains 122 levels. To the downside immediate support might be located at 120.58 (Today’s Low) below that at 120 levels.
USD/JPY extends from 121.09
Currently, the USD/JPY pair trades 0.57% higher at fresh session highs at 121.41, recovering from day’s low reached at 120.58 in early moves. The USD/JPY pair extends its recovery path from two-month lows as positive sentiment surrounding China with stocks rebounding and rising price pressures seems to have calmed fears of a Chinese economy slowdown, thereby boosting risk-appetite across the board.
Moreover, traders resorted to locking-in gains on the USD shorts after the major was heavily offered on Wednesday, which also added to the strengthening USD/JPY.
USD/JPY witnessed nearly 200 pips fall on Wednesday after the Japanese currency benefited from its traditional safe-haven status, as China and Greece add to global risk aversion across the fx space.
The major printed fresh 2-month lows at 120.42 in overnight trades as markets continue to digest FOMC minutes which revealed that Fed appeared less eager to start hiking policy in light of possible lingering Q1 softness and potential weakness from abroad that could spill over to the US.
USD/JPY Technical Levels
To the upside, the next resistance is located 121.78 (May 25 High) levels and above which it could extend gains 122 levels. To the downside immediate support might be located at 120.58 (Today’s Low) below that at 120 levels.