12 Aug 2015
USD/JPY slumps to lows near 124.60
FXStreet (Edinburgh) - After hitting 2-month tops near 125.30 in early trade, USD/JPY is now testing session lows around 124.60.
USD/JPY lower on USD-selling
Same as yesterday, the greenback gathered further traction in the wake of another lower fixing in USD/CNY – despite comments by PBoC officials that Monday’s devaluation was a ‘one-off’ – although the move lacked follow through and the dollar quickly lost its shine, dragging spot to the lower bound of the weekly range near 124.60.
With the PBoC taking centre stage once again, the only release of note in the US calendar will be the Monthly Budget Statement (-$132.0 billion exp.) and the speech by Fed’s Dudley, followed by Foreign Bond Investment and Machinery Orders in Japan (16.4% YoY exp. in June)
USD/JPY levels to consider
As of writing the pair is retreating 0.40% at 124.61 and a break below 124.35 (low Aug.10) would expose 124.10 (low Aug.7) and then 124.02 (low Aug.5). On the upside, the immediate hurdle lines up at 125.59 (high Jun.8) ahead of 125.68 (high Jun.7) and finally 125.86 (2015 high Jun.5).
USD/JPY lower on USD-selling
Same as yesterday, the greenback gathered further traction in the wake of another lower fixing in USD/CNY – despite comments by PBoC officials that Monday’s devaluation was a ‘one-off’ – although the move lacked follow through and the dollar quickly lost its shine, dragging spot to the lower bound of the weekly range near 124.60.
With the PBoC taking centre stage once again, the only release of note in the US calendar will be the Monthly Budget Statement (-$132.0 billion exp.) and the speech by Fed’s Dudley, followed by Foreign Bond Investment and Machinery Orders in Japan (16.4% YoY exp. in June)
USD/JPY levels to consider
As of writing the pair is retreating 0.40% at 124.61 and a break below 124.35 (low Aug.10) would expose 124.10 (low Aug.7) and then 124.02 (low Aug.5). On the upside, the immediate hurdle lines up at 125.59 (high Jun.8) ahead of 125.68 (high Jun.7) and finally 125.86 (2015 high Jun.5).