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8 Sep 2015
USD/JPY: Bulls retain control, holds firmly above 120
FXStreet (Mumbai) - The USD bulls were unstoppable in the European morning, lifting USD/JPY to a fresh four-day high beyond 120 handle, with no major driver to support the sudden upsurge.
USD/JPY: 120.70 – key resistance
Currently, the USD/JPY pair trades 0.71% higher at 120.21, hovering in close vicinity to the fresh four-day highs reached at 120.23 last hours. The major recovered entire losses from Thursday’s fall and gained over 150 pips this week so far as the resurfacing risk-sentiment continues to favour the greenback against the Japanese yen.
Earlier today, the yen did not react to the Japanese GDP data in Asia, although rose to fresh session highs versus the buck post the release of downbeat Chinese trade data which sparked risk-aversion, boosting the safe-haven demand for the yen.
However, heading into the European opening bells, the yen lost strength and surrendered to the improving risk sentiment further boosted by rallying European indices.
Looking ahead, volatility is expected to be elevated during the US session as well with markets eyeing US labour market conditions data to provide some fresh incentives to the pair.
USD/JPY Technical levels to consider
To the upside, the next resistance is located 120.70 (Sept 3 High) levels and above which it could extend 121 (Psychological Levels). To the downside immediate support might be located at 119.62 (Sept 3 Low) below that at 119.20 (Sept 2 Low).
USD/JPY: 120.70 – key resistance
Currently, the USD/JPY pair trades 0.71% higher at 120.21, hovering in close vicinity to the fresh four-day highs reached at 120.23 last hours. The major recovered entire losses from Thursday’s fall and gained over 150 pips this week so far as the resurfacing risk-sentiment continues to favour the greenback against the Japanese yen.
Earlier today, the yen did not react to the Japanese GDP data in Asia, although rose to fresh session highs versus the buck post the release of downbeat Chinese trade data which sparked risk-aversion, boosting the safe-haven demand for the yen.
However, heading into the European opening bells, the yen lost strength and surrendered to the improving risk sentiment further boosted by rallying European indices.
Looking ahead, volatility is expected to be elevated during the US session as well with markets eyeing US labour market conditions data to provide some fresh incentives to the pair.
USD/JPY Technical levels to consider
To the upside, the next resistance is located 120.70 (Sept 3 High) levels and above which it could extend 121 (Psychological Levels). To the downside immediate support might be located at 119.62 (Sept 3 Low) below that at 119.20 (Sept 2 Low).