18 Aug 2015
USD/JPY: Side-lined below 124.50
FXStreet (Mumbai) - The US dollar extends its side-trend for the second straight session versus the Japanese yen on Tuesday, with USD/JPY capped below 124.50 levels, as the pair awaits fresh incentives from the upcoming US inflation figures and the Fed minutes to set a clear tone.
USD/JPY struggles to extends higher
Currently, the USD/JPY pair trades modestly flat at 124.45, unable to break above 124.50 levels. The major continues to trade around a flat-line, extending its range trade from the previous session as the pair is stuck in a bullish triangle pattern and awaits key US data due today and in the week ahead for fresh breakouts.
Markets believe any break to the downside around 124 handle, should be seen as a good buying opportunity which could once again take the pair higher for a retest of 125 barrier. In case of a break below 124 levels, downside could open up for a test of 123.80.
Meanwhile, US currency is expected to keep an upper hand against the yen amid divergent monetary policy outlooks between both the continents as Fed remains on track to raise its interest rates as early as next month backed by the recent streak of upbeat US fundamentals.
On the data space, US macro calendar offers housing starts and building permits data due later tonight ahead of CPI and FOMC minutes due on Wednesday.
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 (Aug 13 Low) below that at 123.77 (Aug 12 Low) levels.
USD/JPY struggles to extends higher
Currently, the USD/JPY pair trades modestly flat at 124.45, unable to break above 124.50 levels. The major continues to trade around a flat-line, extending its range trade from the previous session as the pair is stuck in a bullish triangle pattern and awaits key US data due today and in the week ahead for fresh breakouts.
Markets believe any break to the downside around 124 handle, should be seen as a good buying opportunity which could once again take the pair higher for a retest of 125 barrier. In case of a break below 124 levels, downside could open up for a test of 123.80.
Meanwhile, US currency is expected to keep an upper hand against the yen amid divergent monetary policy outlooks between both the continents as Fed remains on track to raise its interest rates as early as next month backed by the recent streak of upbeat US fundamentals.
On the data space, US macro calendar offers housing starts and building permits data due later tonight ahead of CPI and FOMC minutes due on Wednesday.
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 (Aug 13 Low) below that at 123.77 (Aug 12 Low) levels.