USD/JPY deflates to 121.60

FXStreet (Edinburgh) - After hitting fresh 7-year highs just above the 122.00 handle overnight, USD/JPY is now easing some ground to the 121.65/60 band.

USD/JPY supported by USD strength

The recent upside in the pair has been sustained by the solid US Payrolls during February released last Friday. In addition, overnight hawkish appreciations by Dallas Fed Richard Fischer also added to the buying pressure in the greenback.

The prospects of the Fed hiking as soon as the June meeting keeps gaining traction amongst traders, being at the same time the main driver behind the current optimism around the dollar.

USD/JPY key levels

At the moment the pair is advancing 0.40% at 121.63 and a breakout of 122.04 (2015 high Mar.10) followed by 123.00 (psychological level) and then 123.67 (high Jul.9 2007). On the other hand, the immediate support aligns at 121.14 (low Mar.10) ahead of 120.36 (Tenkan Sen) and finally 119.90 (low Mar.6).

GBP/USD bearishness limited whilst above 1.5000 – FXStreet

Valeria Bednarik, Chief Analyst at FXStreet, views that GBP/USD bearish tone is limited, and the pair can advance to 1.5130/40 on a recovery above 1.5090, while a break below 1.5030 would target 1.4980/1.5000 area.
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