28 Jul 2015
USD/JPY swings back higher to 123.50
FXStreet (Mumbai) - The US dollar bounced-off lows and climbed higher versus its Japanese counterpart in mid-Asia, now pushing USD/JPY towards mid-point of 123 handle. The major erased loses and rebounded higher to session highs after the USD bulls jumped back into bids largely on profit-taking after the recent drop.
USD/JPY supported above 123 handle
Currently, the USD/JPY pair trades 0.17% higher at 123.44, hovering close to fresh session highs reached at 123.49 some minutes ago. USD/JPY once again found good support just ahead of 123 handle and bounced-back sharply nearly 35 pips mainly driven by technical buying after the pair failed to breach 123 levels for the second straight session.
Moreover, profit-booking spree on the USD shorts after the recent weakness also added to the sudden jump in the USD/JPY pair. The US dollar index, a virtual gauge of the greenback’s relative strength reversed previous losses and edged 0.10% higher to 96.72.
While markets ignored the extended sell-off seen in Chinese equities on Tuesday which offers little support to the safe-haven appeal in yen. Looking ahead, US macro data due later today may also influence the pair amid data-quiet European session ahead.
Traders now turn their focus towards Federal Open Market Committee (FOMC) statement, scheduled to be released on Wednesday. Market expects to see a firmer tone come out of the Federal Reserve (Fed), confirming the possibility of a rate hike in September.
USD/JPY Technical Levels
To the upside, the next resistance is located 123. 85 (July 26 High) levels and above which it could extend gains 124.12 (July 24 High) levels. To the downside immediate support might be located at 123.01 (July 27 Low) below that at 122.57 (July 3 Low) levels.
USD/JPY supported above 123 handle
Currently, the USD/JPY pair trades 0.17% higher at 123.44, hovering close to fresh session highs reached at 123.49 some minutes ago. USD/JPY once again found good support just ahead of 123 handle and bounced-back sharply nearly 35 pips mainly driven by technical buying after the pair failed to breach 123 levels for the second straight session.
Moreover, profit-booking spree on the USD shorts after the recent weakness also added to the sudden jump in the USD/JPY pair. The US dollar index, a virtual gauge of the greenback’s relative strength reversed previous losses and edged 0.10% higher to 96.72.
While markets ignored the extended sell-off seen in Chinese equities on Tuesday which offers little support to the safe-haven appeal in yen. Looking ahead, US macro data due later today may also influence the pair amid data-quiet European session ahead.
Traders now turn their focus towards Federal Open Market Committee (FOMC) statement, scheduled to be released on Wednesday. Market expects to see a firmer tone come out of the Federal Reserve (Fed), confirming the possibility of a rate hike in September.
USD/JPY Technical Levels
To the upside, the next resistance is located 123. 85 (July 26 High) levels and above which it could extend gains 124.12 (July 24 High) levels. To the downside immediate support might be located at 123.01 (July 27 Low) below that at 122.57 (July 3 Low) levels.