31 Jul 2015
USD/JPY: Yen bulls offered support around 124 on Japan’s CPI
FXStreet (Mumbai) - The USD/JPY pair erased previous gains and fell into the negative territory at Tokyo open, largely as the yen manages to regain lost footing versus the US dollar following the release of better than expectations Japanese price pressures print, while markets shrugged off downbeat employment data from the world’s third largest economy.
USD/JPY drops from 124.09
Currently, the USD/JPY pair trades -0.14% lower at fresh session lows of 123.96, finding it difficult to hold onto 124 barrier. USD/JPY reversed a part of yesterday’s gains and edged lower as the yen was boosted versus the greenback on the back of mixed Japanese data with the national CPI beating market forecasts showing that Bank of Japan’s (BOJ) Governor Kuroda’s efforts to spur inflation are finally fructifying.
Japan’s national CPI excluding fresh food rose 0.1% from a year earlier, the statistics bureau said Friday. Markets had estimated prices to remain muted.
Moreover, traders resorted to profit-taking on their USD longs after the major hit the critical resistance near 124.58 and failed to extend the rally beyond it. While squaring off the positions on monthly closing may also drag USD/JPY lower.
The dollar-yen pair rallied to the highest levels in seven weeks after the latest GDP numbers from the US confirmed the Fed’s rate-hike stance this year after policymakers suggested that if solid data continues to come in, they will raise rates later this year.
Traders now turn their attention towards US a slew of US macro releases due later today for further momentum on the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located 124.50 (July 21 High) levels and above which it could extend gains 124.75 (June 9 High) levels. To the downside immediate support might be located at 123.85 (July 30 Low) below that at 123.73 (July 21 Low) levels.
USD/JPY drops from 124.09
Currently, the USD/JPY pair trades -0.14% lower at fresh session lows of 123.96, finding it difficult to hold onto 124 barrier. USD/JPY reversed a part of yesterday’s gains and edged lower as the yen was boosted versus the greenback on the back of mixed Japanese data with the national CPI beating market forecasts showing that Bank of Japan’s (BOJ) Governor Kuroda’s efforts to spur inflation are finally fructifying.
Japan’s national CPI excluding fresh food rose 0.1% from a year earlier, the statistics bureau said Friday. Markets had estimated prices to remain muted.
Moreover, traders resorted to profit-taking on their USD longs after the major hit the critical resistance near 124.58 and failed to extend the rally beyond it. While squaring off the positions on monthly closing may also drag USD/JPY lower.
The dollar-yen pair rallied to the highest levels in seven weeks after the latest GDP numbers from the US confirmed the Fed’s rate-hike stance this year after policymakers suggested that if solid data continues to come in, they will raise rates later this year.
Traders now turn their attention towards US a slew of US macro releases due later today for further momentum on the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located 124.50 (July 21 High) levels and above which it could extend gains 124.75 (June 9 High) levels. To the downside immediate support might be located at 123.85 (July 30 Low) below that at 123.73 (July 21 Low) levels.