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15 Jan 2015
USD/JPY inching higher, 118.00 on sight
FXStreet (Edinburgh) - The Japanese yen is giving away some of the recent gains vs. its American counterpart, allowing USD/JPY to return to the upper 117.00s.
USD/JPY supported around 116.00
After bottoming out in the vicinity of 116.00 the figure earlier in the week, spot managed to reverse the descent and resume the underlying up-trend, trading now at reaching distance from the 118.00 mark. Poor US data on Wednesday and a renewed offered tone around the US dollar would be the drivers behind the recent down-move, although repatriation flows from Japanese investors were also feeding the recent JPY strength. “Even though we continue to see USD/JPY upside on divergent monetary policy, the cross may be range-bound for a while now before another move higher when Fed hikes are in sight”.
USD/JPY important levels
As of writing the pair is up 0.32% at 117.65 with the next hurdle at 117.95 (high Jan.14) ahead of 118.19 (Kijun Sen) and then 118.85 (high Jan.13). On the other hand, a break below 116.07 (low Jan.14) would expose 115.56 (low Nov.16 2014) and finally 115.49 (38.2% of 105.19-121.86).
USD/JPY supported around 116.00
After bottoming out in the vicinity of 116.00 the figure earlier in the week, spot managed to reverse the descent and resume the underlying up-trend, trading now at reaching distance from the 118.00 mark. Poor US data on Wednesday and a renewed offered tone around the US dollar would be the drivers behind the recent down-move, although repatriation flows from Japanese investors were also feeding the recent JPY strength. “Even though we continue to see USD/JPY upside on divergent monetary policy, the cross may be range-bound for a while now before another move higher when Fed hikes are in sight”.
USD/JPY important levels
As of writing the pair is up 0.32% at 117.65 with the next hurdle at 117.95 (high Jan.14) ahead of 118.19 (Kijun Sen) and then 118.85 (high Jan.13). On the other hand, a break below 116.07 (low Jan.14) would expose 115.56 (low Nov.16 2014) and finally 115.49 (38.2% of 105.19-121.86).