19 Aug 2015
USD/JPY: Yen keeps gains amid China-led risk-off flows
FXStreet (Mumbai) - The yen remains better bid and tries to recover previous losses against the US dollar in the early European session, with USD/JPY wavering in a narrow range above 124 levels, as the China stocks rout fuelled the demand for safety assets such as the Japanese currency.
USD/JPY capped below 124.50
Currently, the USD/JPY pair trades -0.08% lower at 124.30, recovering from session lows posted at 124.22. The dollar-yen pair remains slightly weak as the JPY bulls have regained control as traders flocked to safe-havens on increasing concerns over slowdown in China following the ongoing sell-off in Chinese stock markets.
Moreover, the US dollar has surrendered a part of yesterday’s gains and corrects lower ahead of the crucial economic data from the US – Inflation and Fed minutes. Wall Street economists are projecting the CPI edged 0.2% higher in July from a month earlier. A massive slump in energy costs over the preceding 12 months means that the core CPI may have risen only 0.2% since July last year.
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 capped below 124.50
Currently, the USD/JPY pair trades -0.08% lower at 124.30, recovering from session lows posted at 124.22. The dollar-yen pair remains slightly weak as the JPY bulls have regained control as traders flocked to safe-havens on increasing concerns over slowdown in China following the ongoing sell-off in Chinese stock markets.
Moreover, the US dollar has surrendered a part of yesterday’s gains and corrects lower ahead of the crucial economic data from the US – Inflation and Fed minutes. Wall Street economists are projecting the CPI edged 0.2% higher in July from a month earlier. A massive slump in energy costs over the preceding 12 months means that the core CPI may have risen only 0.2% since July last year.
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.