25 Feb 2015
USD/JPY retesting lows at 118.63
FXStreet (Mumbai) - USD/JPY keeps losses in the European morning, extending its downtrend from the previous session as the US dollar was sold-off further versus its major peers.
USD/JPY drops from 118.76 levels
Currently, the USD/JPY trades lower by -0.23% 118.68 levels, retreating from lows at 118.63 posted in the previous session. The pair remains under pressure amid persistent broad based US dollar weakness after Yellen delivered her testimony yesterday. The testimony indicated that policymakers may decide to drop the reference to "patience" from their forward guidance at next month's meeting and came out largely on the lines of January’s FOMC minutes.
Moreover, USD/JPY remained undermined by plummeting US bond yields on Tuesday, as the 10-year yield fell back below the 2% mark, indicating investors interpreted Yellen's speech as slightly dovish.
Meanwhile, traders now await Yellen’s testimony before the House Financial Services Committee and US home sales data due later today for further US dollar moves.
USD/JPY Technical Levels
To the upside, the next resistance is located at 118.92 (5-DMA) levels and above which it could extend gains 119.19 (Feb 19 High) levels. To the downside immediate support might be located at 118.53 (50-DMA) levels, below that at 118.23 (100-DMA) levels.
USD/JPY drops from 118.76 levels
Currently, the USD/JPY trades lower by -0.23% 118.68 levels, retreating from lows at 118.63 posted in the previous session. The pair remains under pressure amid persistent broad based US dollar weakness after Yellen delivered her testimony yesterday. The testimony indicated that policymakers may decide to drop the reference to "patience" from their forward guidance at next month's meeting and came out largely on the lines of January’s FOMC minutes.
Moreover, USD/JPY remained undermined by plummeting US bond yields on Tuesday, as the 10-year yield fell back below the 2% mark, indicating investors interpreted Yellen's speech as slightly dovish.
Meanwhile, traders now await Yellen’s testimony before the House Financial Services Committee and US home sales data due later today for further US dollar moves.
USD/JPY Technical Levels
To the upside, the next resistance is located at 118.92 (5-DMA) levels and above which it could extend gains 119.19 (Feb 19 High) levels. To the downside immediate support might be located at 118.53 (50-DMA) levels, below that at 118.23 (100-DMA) levels.