11 Aug 2015
USD/JPY: Recovery capped at 124.90
FXStreet (Mumbai) - USD/JPY failed yet another attempt to reclaim 125 handle in the mid-Asian session, as the greenback moved back to familiar range in the upper 124 levels versus the Japanese yen as traders assess the latest PBOC move and the recent Fed officials’ speeches.
USD/JPY spiked to 124.89 on Yuan devaluation news
Currently, the USD/JPY pair trades modestly flat at 124.70, defending mild gains on broad USD strength. The dollar-yen pair struggles to regain lost ground, although remains better bid as the US dollar poses a solid recovery from the Fed Fischer’s and Lockhart’s less hawkish comments-led drop.
Moreover, the latest Yuan depreciation by the PBOC is widely expected to pressure USD/Asia currencies up, which also lent a helping hand to USD/JPY, driving the major to highs just shy f 125 handle earlier this session.
Looking ahead, markets now shift focus to a set of US macro data lined up release later today ahead of BOJ monetary policy minutes and Japan’s industrial production data due tomorrow.
USD/JPY Technical Levels
To the upside, the next resistance is located 125.03 (Aug 5 High) levels and above which it could extend gains 125.69 (June 8 High) levels. To the downside immediate support might be located at 124.32 (June 5 Low) below that at 124 levels.
USD/JPY spiked to 124.89 on Yuan devaluation news
Currently, the USD/JPY pair trades modestly flat at 124.70, defending mild gains on broad USD strength. The dollar-yen pair struggles to regain lost ground, although remains better bid as the US dollar poses a solid recovery from the Fed Fischer’s and Lockhart’s less hawkish comments-led drop.
Moreover, the latest Yuan depreciation by the PBOC is widely expected to pressure USD/Asia currencies up, which also lent a helping hand to USD/JPY, driving the major to highs just shy f 125 handle earlier this session.
Looking ahead, markets now shift focus to a set of US macro data lined up release later today ahead of BOJ monetary policy minutes and Japan’s industrial production data due tomorrow.
USD/JPY Technical Levels
To the upside, the next resistance is located 125.03 (Aug 5 High) levels and above which it could extend gains 125.69 (June 8 High) levels. To the downside immediate support might be located at 124.32 (June 5 Low) below that at 124 levels.