13 Aug 2015
USD/JPY: Bulls back in the game, will the recovery sustain?
FXStreet (Mumbai) - After a volatile previous session, the USD/JPY pair tires to recover lost ground somewhat in the mid-Asian session, with the greenback staging a broad based come back while the yen loses strength following dovish comments from Japan’s PM adviser.
USD/JPY supported above 124 levels
Currently, the USD/JPY pair trades 0.14% higher at 124.38, attempting a bounce to 124.50 levels. The greenback keeps the upper edge over its Japanese counterpart in Asia as PBOC Yuan fix impact fades after the central bank’s official Yi Gang talked up currency and that now this FX development becomes a new normal.
Moreover, the major also rebounded higher after the yen weakened following Japan’s PM Adviser Hamada hinted at further BOJ easing to counter the effects of Yuan devaluation. While worse than estimates Japan’s core machinery orders data also dampened the sentiment around the Japanese currency.
Looking ahead, retail sales and weekly jobless claims from the US due for release later in the New York session, is expected to have major influence on the USD/JPY moves.
USD/JPY Technical Levels
To the upside, the next resistance is located 124.80 (Aug 10 High) levels and above which it could extend gains 125.08 (Aug 7 High) levels. To the downside immediate support might be located at 124.07 (Today’s Low) below that at 123.77 (Aug 12 Low) levels.
USD/JPY supported above 124 levels
Currently, the USD/JPY pair trades 0.14% higher at 124.38, attempting a bounce to 124.50 levels. The greenback keeps the upper edge over its Japanese counterpart in Asia as PBOC Yuan fix impact fades after the central bank’s official Yi Gang talked up currency and that now this FX development becomes a new normal.
Moreover, the major also rebounded higher after the yen weakened following Japan’s PM Adviser Hamada hinted at further BOJ easing to counter the effects of Yuan devaluation. While worse than estimates Japan’s core machinery orders data also dampened the sentiment around the Japanese currency.
Looking ahead, retail sales and weekly jobless claims from the US due for release later in the New York session, is expected to have major influence on the USD/JPY moves.
USD/JPY Technical Levels
To the upside, the next resistance is located 124.80 (Aug 10 High) levels and above which it could extend gains 125.08 (Aug 7 High) levels. To the downside immediate support might be located at 124.07 (Today’s Low) below that at 123.77 (Aug 12 Low) levels.