27 Jan 2015
USD/JPY threatening 118.00
FXStreet (Edinburgh) - The Japanese yen is now gathering pace vs. its American counterpart, dragging USD/JPY to test the key support at 118.00.
USD/JPY down from 118.70
The yen is trading on a firmer tone following the recent comments by Japan’s Economics Minister Amari, arguing that the domestic economy might take more than previously expected to reach the 2% inflation target, adding that ‘It is undesirable to have either unlimited fall or rise in the yen’. His appreciations add to the comments by the BoJ from last week, remarking that further monetary easing would be unlikely.
“With the USD-JPY’s upside freed by the more buoyant JPYcrosses on Monday as risk appetite improved, the 55-day MA (118.60) may serve as a near term focal point pending the FOMC while 117.50 may cushion for now”, suggested strategists at OCBC Bank.
USD/JPY levels to watch
As of writing the pair is retreating 0.35% at 118.06 with the next support at 117.25 (low Jan.22) ahead of 117.18 (low Jan.21) and then 116.93 (low Jan.19). On the other hand a break above 118.82 (high Jan.22) would aim for 118.87 (high Jan.20) and finally 118.92 (61.8% of 120.82-115.85).
USD/JPY down from 118.70
The yen is trading on a firmer tone following the recent comments by Japan’s Economics Minister Amari, arguing that the domestic economy might take more than previously expected to reach the 2% inflation target, adding that ‘It is undesirable to have either unlimited fall or rise in the yen’. His appreciations add to the comments by the BoJ from last week, remarking that further monetary easing would be unlikely.
“With the USD-JPY’s upside freed by the more buoyant JPYcrosses on Monday as risk appetite improved, the 55-day MA (118.60) may serve as a near term focal point pending the FOMC while 117.50 may cushion for now”, suggested strategists at OCBC Bank.
USD/JPY levels to watch
As of writing the pair is retreating 0.35% at 118.06 with the next support at 117.25 (low Jan.22) ahead of 117.18 (low Jan.21) and then 116.93 (low Jan.19). On the other hand a break above 118.82 (high Jan.22) would aim for 118.87 (high Jan.20) and finally 118.92 (61.8% of 120.82-115.85).