10 Mar 2015
USD/JPY extends decline to 121.00; next 120.80
FXStreet (Tokyo) - The US Dollar is giving up its previous gains versus the Japanese Yen and after being strongly rejected by the 122.00 level, the USD/JPY is now testing the 121.00 area.
Somebody doesn't want the USD/JPY above 122.00. Earlier in the day, the USD/JPY rallied from 12160 to make another attempting to break the 122.00 level but the pair found a strong selling interest that launched back to current prices.
As Pablo Piovano from FXStreet reported previously, the latest rally was driven by "the prospects of the Fed hiking as soon as the June meeting keeps gaining traction amongst traders, being at the same time the main driver behind the current optimism around the dollar."
However, USD/JPY is now trading at 121.02, down 0.09% on the day, having posted a daily high at 122.04 and low at 120.92. The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is strongly bearish.
USD/JPY forecast
According to Greg Michalowski from ForexLive, weak stocks are pressuring the USD/JPY to the downside as "the JPY has found a 'flight into relative safety of the JPY' bid in trading today."
Michalowski also commented that the USD/JPY price is moving "toward the highs from end of December/early January." He affirms that "this will be eyed as support or the pair."
Dollar to Yen exchange rate levels
If the pair breaks below 121.00, it will find next supports at 120.80, 120.60 and 120.20. To the upside, resistances are now at 121.60, 122.00 and 120.20.
Somebody doesn't want the USD/JPY above 122.00. Earlier in the day, the USD/JPY rallied from 12160 to make another attempting to break the 122.00 level but the pair found a strong selling interest that launched back to current prices.
As Pablo Piovano from FXStreet reported previously, the latest rally was driven by "the prospects of the Fed hiking as soon as the June meeting keeps gaining traction amongst traders, being at the same time the main driver behind the current optimism around the dollar."
However, USD/JPY is now trading at 121.02, down 0.09% on the day, having posted a daily high at 122.04 and low at 120.92. The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is strongly bearish.
USD/JPY forecast
According to Greg Michalowski from ForexLive, weak stocks are pressuring the USD/JPY to the downside as "the JPY has found a 'flight into relative safety of the JPY' bid in trading today."
Michalowski also commented that the USD/JPY price is moving "toward the highs from end of December/early January." He affirms that "this will be eyed as support or the pair."
Dollar to Yen exchange rate levels
If the pair breaks below 121.00, it will find next supports at 120.80, 120.60 and 120.20. To the upside, resistances are now at 121.60, 122.00 and 120.20.