22 Dec 2014
USD/JPY climbs higher, eyes 120 levels
FXStreet (Mumbai) - The Japanese yen continued to weaken against the US dollar in the European session, as traders view last week’s correction as over.
Currently, USD/JPY trades at fresh day’s high levels of 119.89, up 0.35% on the day. The US dollar trades elevated against the yen as the Japanese currency remains pressured as diverging monetary policy outlooks in the US and Japan will likely continue supporting the US dollar in the coming weeks. The greenback was bolstered by the Federal Reserve last week, as the central bank slightly changed its language and traders are now anticipating the first rate hike to come after April's meeting. On the contrary, the Bank of Japan left its policy unchanged on Friday, still poised to fight deflation by any means necessary.
Meanwhile, the pair is expected to remain in range for remainder of this holiday shortened week with Japan closed for a holiday tomorrow.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.92 (Dec 10 High) levels and above which it could extend gains to 121 levels. To the downside immediate support might be located at 119.09 (Dec 3 Low), below that at 118.80 (Dec 19 Low), levels.
Currently, USD/JPY trades at fresh day’s high levels of 119.89, up 0.35% on the day. The US dollar trades elevated against the yen as the Japanese currency remains pressured as diverging monetary policy outlooks in the US and Japan will likely continue supporting the US dollar in the coming weeks. The greenback was bolstered by the Federal Reserve last week, as the central bank slightly changed its language and traders are now anticipating the first rate hike to come after April's meeting. On the contrary, the Bank of Japan left its policy unchanged on Friday, still poised to fight deflation by any means necessary.
Meanwhile, the pair is expected to remain in range for remainder of this holiday shortened week with Japan closed for a holiday tomorrow.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.92 (Dec 10 High) levels and above which it could extend gains to 121 levels. To the downside immediate support might be located at 119.09 (Dec 3 Low), below that at 118.80 (Dec 19 Low), levels.