12 May 2015
USD/JPY keeps losses below 120
FXStreet (Mumbai) - The US dollar failed to breach 120.30 resistance and edged lower against the Japanese yen in the European session, knocking-off USD/JPY below 120 threshold, largely on the back of technical selling. While market now await US JOLTS jobs openings numbers and Fed’s Williams speech for further momentum.
USD/JPY struggling around 10-DMA
Currently, the USD/JPY pair trades -0.11% lower at 119.94, bouncing off session lows at 119.86. Though USD/JPY slipped below 120 handle on facing rejection at 120.30 hurdle, the downside remains cushioned by rising US treasury yields correlating gains from European bond yields upsurge. The 10—yr and 2-yr yields on treasuries stand at 2.34% and 0.636% respectively, both recording over 3% gain on the day.
Meanwwhile, buy on dips strategy is recommended by Wespac team explaining, “At the risk of moving well beyond the point of being considered boring, we remain of the view that USD/JPY is in a range trade, that dips are still an opportunity to buy and that dips are 118.50 or below.”
“Dips held around multiple lows down to 118.33 in the recent weeks. Mild short term upside bias. Resistance remains firm towards 120.80/121.20.”
Later this week, traders will focus on April's US retail trade numbers, which will provide more clarity in terms of the economic rebound that can be expected in the early second quarter.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120.30 (May 1 High) levels and above which it could extend gains 120.54 (May 5 High) levels. To the downside immediate support might be located at 119.80 below that at 119.43 (May 11 Low) levels.
USD/JPY struggling around 10-DMA
Currently, the USD/JPY pair trades -0.11% lower at 119.94, bouncing off session lows at 119.86. Though USD/JPY slipped below 120 handle on facing rejection at 120.30 hurdle, the downside remains cushioned by rising US treasury yields correlating gains from European bond yields upsurge. The 10—yr and 2-yr yields on treasuries stand at 2.34% and 0.636% respectively, both recording over 3% gain on the day.
Meanwwhile, buy on dips strategy is recommended by Wespac team explaining, “At the risk of moving well beyond the point of being considered boring, we remain of the view that USD/JPY is in a range trade, that dips are still an opportunity to buy and that dips are 118.50 or below.”
“Dips held around multiple lows down to 118.33 in the recent weeks. Mild short term upside bias. Resistance remains firm towards 120.80/121.20.”
Later this week, traders will focus on April's US retail trade numbers, which will provide more clarity in terms of the economic rebound that can be expected in the early second quarter.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120.30 (May 1 High) levels and above which it could extend gains 120.54 (May 5 High) levels. To the downside immediate support might be located at 119.80 below that at 119.43 (May 11 Low) levels.