USD/JPY frozen near 117.50 amid holiday-thinned trading

Amid a market holiday in Japan and pre-Christmas light trading, the USD/JPY pair trades little changed near the mid-point of 117 handle.

USD/JPY looks vulnerable

The dollar-yen pair is seen in a phase of downside consolidation, showing no signs of life amid a broadly muted US dollar and holiday-thinned market conditions. The Japanese market is closed today, as traders celebrate Emperor’s birthday.

Moreover, the pair remained largely unperturbed by overnight downgrade of the US Q4 GDP by the Atlanta Fed from 2.6% to 2.5%, as a typical pre-holiday season calm set into the markets.

The major looks vulnerable below a break of 10-DMA support located at 117.37 levels, as the bears gather pace for the next move lower. The USD/JPY pair is last seen exchanging hands at 117.48, having faced rejection near 117.60 region.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 117.90 (previous high). A break above the last, the major could test 118.43 (Dec 16 high) and 118.67 (10-month highs) beyond the last. While to the downside, the immediate support is seen at 117.37 (10-DMA) next at 116.89 (daily S2) and below that at 116 (zero figure).