25 Feb 2015
USD/JPY: 118.20 in sight? – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, views that the likelihood of USD/JPY testing 118.20 levels today is high if US new home sales disappoint.
Key Quotes
“Yellen’s comments pushed the 10-year Treasury yield below 2% level, indicating the June rate hike is now off the table. The weakness in the yield pushed the USD/JPY pair below 150% Fib expansion level of the move from 100.81 to 110.06 to 105.18 located at 118.89.”
“The pair currently trades at 118.79 levels with the 10-year yield in the US hovering at 1.99%.”
“An upbeat Chinese PMI data helped pair recover slightly from the low of 118.61 levels.”
“However, disappointing New home sales figure in the US could drive the pair down to the 50-DMA located at 118.51, under which the pair could fall to 118.21 levels”
“However, further losses are unlikely especially if Draghi turns optimistic on the Eurozone economy. In such a case, the pair could bounce back from the 50-DMA to 119.20 levels.”
Key Quotes
“Yellen’s comments pushed the 10-year Treasury yield below 2% level, indicating the June rate hike is now off the table. The weakness in the yield pushed the USD/JPY pair below 150% Fib expansion level of the move from 100.81 to 110.06 to 105.18 located at 118.89.”
“The pair currently trades at 118.79 levels with the 10-year yield in the US hovering at 1.99%.”
“An upbeat Chinese PMI data helped pair recover slightly from the low of 118.61 levels.”
“However, disappointing New home sales figure in the US could drive the pair down to the 50-DMA located at 118.51, under which the pair could fall to 118.21 levels”
“However, further losses are unlikely especially if Draghi turns optimistic on the Eurozone economy. In such a case, the pair could bounce back from the 50-DMA to 119.20 levels.”