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23 Apr 2015
USD/JPY dips to fresh lows near 119.70
FXStreet (Mumbai) - The US dollar failed to sustain above 120 barrier and fell back in red versus the yen, knocking-off USD/JPY to fresh session lows, mainly driven by a bout of profit taking after the recent US macro data backed strength.
USD/JPY drops from 120
Currently, the USD/JPY pair trades lower by -0.15% at fresh session lows of 119.71 levels, having posted day’s high at 120.09. The USD/JPY pair snapped its three-day rally and inched lower largely as the traders took to profit booking on their USD longs following the recent surge on impressive US existing home sales data.
The latest upbeat US data raised hopes of a stronger US economic recovery holding ground, fuelling sooner rate-hike bets which pushed the treasury yields higher across the curve.
The US dollar index which measures the relative strength of the greenback against a basket of six major currencies erased gains and trades muted at 98.28.
Meanwhile, traders now await fresh incentives ahead of a busy EUR calendar which may have major impact on USD moves.
Looking ahead, we have weekly figures for initial jobless claims and an update on new home sales for today. Durable goods orders will attract traders on Friday.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120.19 (April 14 High) levels and above which it could extend gains 120.45 (April 7 High) levels. To the downside immediate support might be located at 119.62 (April 8 Low) below that at 119.54 (5-DMA) levels.
USD/JPY drops from 120
Currently, the USD/JPY pair trades lower by -0.15% at fresh session lows of 119.71 levels, having posted day’s high at 120.09. The USD/JPY pair snapped its three-day rally and inched lower largely as the traders took to profit booking on their USD longs following the recent surge on impressive US existing home sales data.
The latest upbeat US data raised hopes of a stronger US economic recovery holding ground, fuelling sooner rate-hike bets which pushed the treasury yields higher across the curve.
The US dollar index which measures the relative strength of the greenback against a basket of six major currencies erased gains and trades muted at 98.28.
Meanwhile, traders now await fresh incentives ahead of a busy EUR calendar which may have major impact on USD moves.
Looking ahead, we have weekly figures for initial jobless claims and an update on new home sales for today. Durable goods orders will attract traders on Friday.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120.19 (April 14 High) levels and above which it could extend gains 120.45 (April 7 High) levels. To the downside immediate support might be located at 119.62 (April 8 Low) below that at 119.54 (5-DMA) levels.