7 May 2015
USD/JPY sidelined around 119.50
FXStreet (Mumbai) - The US dollar snapped previous decline and advanced versus the Japanese yen in Asia, keeping USD/JPY around the mid-point on the 119 handle, largely as the US dollar recouped partial losses and recovered from fresh three month lows reached versus its major peers. While markets now eagerly await NFP data for further direction on the major.
USD/JPY stalls decline
Currently, the USD/JPY pair trades modestly flat at 119.52, having posting day’s high at 119.61 and day’s low at 119.33. The USD/JPY pair recovers losses and defends mild gains as traders resorted to profit-booking on their USD shorts after soft ADP employment data dragged the US dollar lower across the board. While Fed’s Yellen’s speech also favoured USD bears, further weighing on the major.
Meanwhile, the US dollar index which measures the relative strength of the greenback versus six major currencies moved away from three month lows at 93.96 and now trades at 94.24, up 0.05% on the day.
Moreover, with concerns over Greece resurfacing and the looming UK’s general elections, risk-off environment may prevail which is likely to benefit the safe-haven appeal in yen, keeping the upside in the major limited.
Looking ahead, markets now turn their focus towards today’s US jobless claims while the critical non-farm payrolls figures are due on Friday. NFP is expected to post a 230,000 gain, along with the unemployment rate, which is predicted to soften to 5.4% from 5.5%.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120 levels and above which it could extend gains 120.30 (May 1 High) levels. To the downside immediate support might be located at 119.33 (Today’s Low) below that at 119.18 (May 6 Low) levels.
USD/JPY stalls decline
Currently, the USD/JPY pair trades modestly flat at 119.52, having posting day’s high at 119.61 and day’s low at 119.33. The USD/JPY pair recovers losses and defends mild gains as traders resorted to profit-booking on their USD shorts after soft ADP employment data dragged the US dollar lower across the board. While Fed’s Yellen’s speech also favoured USD bears, further weighing on the major.
Meanwhile, the US dollar index which measures the relative strength of the greenback versus six major currencies moved away from three month lows at 93.96 and now trades at 94.24, up 0.05% on the day.
Moreover, with concerns over Greece resurfacing and the looming UK’s general elections, risk-off environment may prevail which is likely to benefit the safe-haven appeal in yen, keeping the upside in the major limited.
Looking ahead, markets now turn their focus towards today’s US jobless claims while the critical non-farm payrolls figures are due on Friday. NFP is expected to post a 230,000 gain, along with the unemployment rate, which is predicted to soften to 5.4% from 5.5%.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120 levels and above which it could extend gains 120.30 (May 1 High) levels. To the downside immediate support might be located at 119.33 (Today’s Low) below that at 119.18 (May 6 Low) levels.