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27 Mar 2015
USD/JPY: Yen erases weak Japan’s data-led losses
FXStreet (Mumbai) - The Japanese yen wiped out previous losses against the US dollar in the mid-Asian session and trades unchanged above 119 handle as traders moved past downbeat Japanese macro data and now eagerly await US GDP numbers.
USD/JPY drops from 119.41
Currently, the USD/JPY pair trades flat at 119.20 levels, bouncing off fresh session highs at 119.41 levels posted earlier in the session. USD/JPY erased previous gains and trades muted, forming a small doji on daily chart as traders digested weak Japanese CPI and retail sales induced losses and now search for fresh incentives from the session ahead.
Japan National CPI Ex Food, Energy (YoY) declined to 2% in February from previous 2.1%. Japan Retail Trade (YoY) below forecasts (-1.5%) in February: Actual (-1.8%).
Moreover, weaker treasury yield, on both 10-yr and 2-yr notes also dragged USD/JPY lower along with the US dollar. The US dollar index which measures the relative strength of the greenback against a basket of six major currencies trades flat at 97.62 levels.
Meanwhile, traders now turn their attention towards crucial US macro data including GDP figures and consumer sentiment data for further direction in the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.41 (Today’s High) levels and above which it could extend gains 119.85 (March 25 High) levels. To the downside immediate support might be located at 119, below that at 118.65 levels.
USD/JPY drops from 119.41
Currently, the USD/JPY pair trades flat at 119.20 levels, bouncing off fresh session highs at 119.41 levels posted earlier in the session. USD/JPY erased previous gains and trades muted, forming a small doji on daily chart as traders digested weak Japanese CPI and retail sales induced losses and now search for fresh incentives from the session ahead.
Japan National CPI Ex Food, Energy (YoY) declined to 2% in February from previous 2.1%. Japan Retail Trade (YoY) below forecasts (-1.5%) in February: Actual (-1.8%).
Moreover, weaker treasury yield, on both 10-yr and 2-yr notes also dragged USD/JPY lower along with the US dollar. The US dollar index which measures the relative strength of the greenback against a basket of six major currencies trades flat at 97.62 levels.
Meanwhile, traders now turn their attention towards crucial US macro data including GDP figures and consumer sentiment data for further direction in the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.41 (Today’s High) levels and above which it could extend gains 119.85 (March 25 High) levels. To the downside immediate support might be located at 119, below that at 118.65 levels.