USD/JPY consolidation with downside bias – AceTrader

FXStreet (Barcelona) - The AceTrader Team views that USD/JPY might consolidate with a downside bias for today, with the downside expected to remain capped at 118.20.

Key Quotes

“The greenback is nursing loss in Asian trading after tanking from Tuesday's near 2-week high of 119.84 to 118.76 in NY, then to 118.63 in Tokyo morning after tripping light stops below 118.70.”

“Although traders sold yen broadly ahead of Fed chief Janet Yellen's testimony before the Congress and the approval of Greek debt extension boosted risk sentiment, broad-based selling in dlr quickly occurred when Yellen's released testimony gave no clear indication of when the much-awaited rate increase would take place, subsequent release of downbeat U.S. consumer confidence further added pressure to the pair.”

“Looks like consolidation with downside bias would be seen today, however, intra-day gain in the Nikkei to a fresh 15-year peak should keep price above last week's low at 118.20.”

“Offers are tipped at 118.90/00 and more above with some stops reported above 119.40 whilst some bids are noted at 118.60-40 and more below with fairly large stops touted below 118.20.”

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