26 Aug 2015
USD/JPY: Yen trims losses near 119.35 on BOJ Iwata
FXStreet (Mumbai) - USD/JPY ran through fresh offers around 119.50 levels and dropped nearly 20 pips in the mid-European session, in a knee-jerk reaction to Bank of Japan’s (BOJ) policy maker Iwata’s comments which boosted the Japanese currency.
Yen backed by BOJ Iwata’s upbeat comments
Currently, the USD/JPY pair trades 0.43% higher at 119.37, dropping from 119.50 levels during the last hours. The yen trimmed losses versus the US dollar as the BOJ member Iwata’s comments crossing the wires offered some respite to the domestic currency.
BOJ Iwata noted in his comments via Reuters that Japan’s economic fundamentals are solid and that the economy will continue to recover. He attributed the recent Japan’s stock declines and the yen strength to overseas factors while also adding that BOJ will continue to closely monitor market moves.
However, the prices garners support from the prevailing risk sentiment, despite falling European equities, as focus now shifts back towards the upcoming US macro releases.
Later in the session, US durable goods orders data from the US is due, which may lead the direction for further USD moves. While FOMC member Dudley’s speech will also be closely watched.
USD/JPY Technical levels to consider
To the upside, the next resistance is located 120.41 (Aug 25 High) levels and above which it could extend the gains 120.80 levels. To the downside immediate support might be located at 118.58 (Today’s Low) below that at 118.23 (Aug 25 Low).
Yen backed by BOJ Iwata’s upbeat comments
Currently, the USD/JPY pair trades 0.43% higher at 119.37, dropping from 119.50 levels during the last hours. The yen trimmed losses versus the US dollar as the BOJ member Iwata’s comments crossing the wires offered some respite to the domestic currency.
BOJ Iwata noted in his comments via Reuters that Japan’s economic fundamentals are solid and that the economy will continue to recover. He attributed the recent Japan’s stock declines and the yen strength to overseas factors while also adding that BOJ will continue to closely monitor market moves.
However, the prices garners support from the prevailing risk sentiment, despite falling European equities, as focus now shifts back towards the upcoming US macro releases.
Later in the session, US durable goods orders data from the US is due, which may lead the direction for further USD moves. While FOMC member Dudley’s speech will also be closely watched.
USD/JPY Technical levels to consider
To the upside, the next resistance is located 120.41 (Aug 25 High) levels and above which it could extend the gains 120.80 levels. To the downside immediate support might be located at 118.58 (Today’s Low) below that at 118.23 (Aug 25 Low).