9 Mar 2015
USD/JPY attempts a bounce to 121
FXStreet (Mumbai) - USD/JPY defends mild gains in the mid-Asian session, as the USD bulls continue to ride higher on the wave of upbeat US employment data released on Friday, while dismal Japanese GDP numbers underpins the major.
USD/JPY likely to retest 3-month highs
Currently, the USD/JPY trades modestly flat at 120.90 levels, in another run to reach 121 levels. USD/JPY remains supported this morning and hovers close to the highest level since December 2014 as traders continue to digest impressive US non-farm payrolls, which rose by 295,000 in February, in comparison to the expected 240,000 new jobs. The solid US jobs data raised expectations around a June Fed rate hike versus the September one, boosting the US dollar to three month highs versus the Japanese currency.
Moreover, the yen further lost ground against its US counterpart after the data showed that the Japanese economy grew at a softer rate than initially expected in the December quarter. Japan’s GDP expanded 0.4% in Q4 2014, coming in weaker than the initial estimate of 0.6%.
Meanwhile, USD/JPY is expected to remain buoyed and may reach fresh session highs beyond 121 threshold so long as it holds above support at 5-DMA placed at 120.46 levels.
USD/JPY Technical Levels
To the upside, the next resistance is located at 121.29 (March 6 High) levels and above which it could extend gains 121.86 (Dec 2014 High) levels. To the downside immediate support might be located at 120.46(5-DMA) levels, below that at 120.10 (10-DMA) levels.
USD/JPY likely to retest 3-month highs
Currently, the USD/JPY trades modestly flat at 120.90 levels, in another run to reach 121 levels. USD/JPY remains supported this morning and hovers close to the highest level since December 2014 as traders continue to digest impressive US non-farm payrolls, which rose by 295,000 in February, in comparison to the expected 240,000 new jobs. The solid US jobs data raised expectations around a June Fed rate hike versus the September one, boosting the US dollar to three month highs versus the Japanese currency.
Moreover, the yen further lost ground against its US counterpart after the data showed that the Japanese economy grew at a softer rate than initially expected in the December quarter. Japan’s GDP expanded 0.4% in Q4 2014, coming in weaker than the initial estimate of 0.6%.
Meanwhile, USD/JPY is expected to remain buoyed and may reach fresh session highs beyond 121 threshold so long as it holds above support at 5-DMA placed at 120.46 levels.
USD/JPY Technical Levels
To the upside, the next resistance is located at 121.29 (March 6 High) levels and above which it could extend gains 121.86 (Dec 2014 High) levels. To the downside immediate support might be located at 120.46(5-DMA) levels, below that at 120.10 (10-DMA) levels.