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27 Aug 2015
USD/JPY: Bulls regain control, rises to session highs beyond 120
FXStreet (Mumbai) - The USD/JPY pair bounced-off lows and swung back higher beyond 120 barrier in the European morning, as the USD bulls took back charge and looks to resume its recent upbeat momentum as markets eagerly await the US GDP report ahead of a data-thin EU session.
USD/JPY recovers from session lows
Currently, the USD/JPY pair trades 0.25% at fresh session highs of 120.25, regaining 120 handle. The major quickly reversed losses and jumped back into the green zone as the US dollar erased most losses and is set to resume its previous rally led by upbeat US durable goods data.
Moreover, markets favour the US currency ahead of the crucial Q2 GDP report from the US which is expected to reveal an annualized 3.2% expansion for the second quarter, measured on a quarterly basis, following the 0.2% contraction in the first quarter. It would be better than the first estimate of a 2.3% rise.
On Wednesday, US dollar soared against its major rivals after that the strong rise in US firms' investment levels sapped some speculation that the Fed may not hike rates in Sept due to recent market volatility.
USD/JPY Technical levels to consider
To the upside, the next resistance is located 120.28 (Aug 26 High) levels and above which it could extend gains 120.41 (Aug 25 High) levels. To the downside immediate support might be located at 119 below that at 118.43 (Aug 26 Low).
USD/JPY recovers from session lows
Currently, the USD/JPY pair trades 0.25% at fresh session highs of 120.25, regaining 120 handle. The major quickly reversed losses and jumped back into the green zone as the US dollar erased most losses and is set to resume its previous rally led by upbeat US durable goods data.
Moreover, markets favour the US currency ahead of the crucial Q2 GDP report from the US which is expected to reveal an annualized 3.2% expansion for the second quarter, measured on a quarterly basis, following the 0.2% contraction in the first quarter. It would be better than the first estimate of a 2.3% rise.
On Wednesday, US dollar soared against its major rivals after that the strong rise in US firms' investment levels sapped some speculation that the Fed may not hike rates in Sept due to recent market volatility.
USD/JPY Technical levels to consider
To the upside, the next resistance is located 120.28 (Aug 26 High) levels and above which it could extend gains 120.41 (Aug 25 High) levels. To the downside immediate support might be located at 119 below that at 118.43 (Aug 26 Low).