20 Aug 2015
USD/JPY attempts tepid recovery in Asia, tests 124
FXStreet (Mumbai) - The USD/JPY pair posed a minor recovery in the mid-Asian trades, as the USD bulls jumped back into the bids mainly driven by a short-covering rally after the major dropped sharply to fresh three-week lows on Wednesday following the release of FOMC minutes which surprised the markets to the downside.
USD/JPY bounces-off 50-DMA
Currently, the USD/JPY pair trades 0.11% higher at 123.94, finding it difficult to regain 124 handle. The dollar-yen pair keeps the bid tone intact in Asia, extending its recovery mode from 124.68 levels reached as the US dollar fell further in to losses after the Fed minutes turned out to be dovish, with no clear sign of an imminent September hike.
The US dollar extended weakness versus the yen on Wednesday after the July US inflation figures came out below expectations while the mixed FOMC minutes also dragged the buck lower.
US CPI for July ticked lower from 0.3% to 0.1% month-on-month, while the yearly change printed 0.2% and improved from 0.1% previously. The core gauge dropped to 0.1% from June's 0.2% m/m.
Markets now await a host of US macro data due for release later tonight for further momentum on the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located 124.50 (Aug 19 High) levels and above which it could extend gains 124.64 (Aug 13 High) levels. To the downside immediate support might be located at 123.82 (Today’s Low) below that at 123.65 (50-DMA) levels.
USD/JPY bounces-off 50-DMA
Currently, the USD/JPY pair trades 0.11% higher at 123.94, finding it difficult to regain 124 handle. The dollar-yen pair keeps the bid tone intact in Asia, extending its recovery mode from 124.68 levels reached as the US dollar fell further in to losses after the Fed minutes turned out to be dovish, with no clear sign of an imminent September hike.
The US dollar extended weakness versus the yen on Wednesday after the July US inflation figures came out below expectations while the mixed FOMC minutes also dragged the buck lower.
US CPI for July ticked lower from 0.3% to 0.1% month-on-month, while the yearly change printed 0.2% and improved from 0.1% previously. The core gauge dropped to 0.1% from June's 0.2% m/m.
Markets now await a host of US macro data due for release later tonight for further momentum on the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located 124.50 (Aug 19 High) levels and above which it could extend gains 124.64 (Aug 13 High) levels. To the downside immediate support might be located at 123.82 (Today’s Low) below that at 123.65 (50-DMA) levels.