OctaFX | OctaFX Forex Broker
Open trading account

USD/JPY: Bulls in control, revisits daily highs

FXStreet (Mumbai) - Renewed broad based US dollar strength coupled with positive European equities continue to boost the upside in the USD/JPY pair.

USD/JPY re-attempts 200-DMA

Currently, the USD/JPY pair trades 0.22% higher at 121.33, within a shouting distance of the daily highs recorded at 121.38. The bid tone around the USD/JPY pair keeps strengthening in tandem with the European stocks as favourable risk-sentiment continues to diminish the bids for the yen as a safe-haven.

While steep losses in EUR/USD on the FOMC/ECB divergence continue to boost the US currency against its major competitors, thus benefiting the USD/JPY pair. The USD index rises to fresh weekly highs at 97.57, up 0.33% so far.

Looking ahead, a host of important data from the US, including the ADP jobs report is lined up for release in the New York session. Besides, the Fed Chair Yellen’s speech will remain the main highlight for today.

USD/JPY Technical levels to watch

The prices re-attempts near 200-DMA at 121.42, beyond which doors open for a test of 121.58 (100-DMA) and from there to 122 handle. While to the downside, the immediate support lies at 121/120.95 (today’s low/daily pivot), below which 120.57 (Nov 3 Low) would be tested. A failure to breach the last, the prices could fall further towards 120 handle.

UK services PMI adds fuel to rate hike camp - ING

James Knightley, Research Analyst at ING, notes that the UK October reading of the UK’s service sector purchasing managers’ index has come in at 54.9 versus 53.3 in September (consensus 54.5).
Read more Previous

Japan Post shares surge fails to add to JPY volatility - MUFG

Derek Halpenny, European Head of GMR at MUFG, notes that there has been little impact on the yen from the successful IPO of Japan Post shares, with the holding company shares surging to close 26% higher.
Read more Next
Start livechat