8 Jun 2015
USD/JPY drops to 124.98 on Obama comments
FXStreet (Mumbai) - The selling interest in the US dollar spiked, taking the USD/JPY to a session low of 124.98 after US President Barack Obama expressed concerns over the strengthening US dollar.
Dollar strength is a problem – Obama
The USD/JPY pair fell from 125.61 to a low of 124.98 after Obama was quoted as saying “US dollar strength is a problem.” The US dollar has been on the rampage since mid-to-late 2014 as the expectations of an early rate hike started building up in the markets.
Obama’s comments come after the stellar non-farm payrolls report for May released on Friday, which renewed bets of a rate hike in September. The pair has recovered slightly to 125.16, however, it still down 0.29% for the day.
USD/JPY Technical Levels
The immediate resistance is located at 125.30, above which the pair could re-test the daily high of 125.84. On the flip side, a break below 124.98 could drive the pair lower to 124.34 (hourly 50-MA).
Dollar strength is a problem – Obama
The USD/JPY pair fell from 125.61 to a low of 124.98 after Obama was quoted as saying “US dollar strength is a problem.” The US dollar has been on the rampage since mid-to-late 2014 as the expectations of an early rate hike started building up in the markets.
Obama’s comments come after the stellar non-farm payrolls report for May released on Friday, which renewed bets of a rate hike in September. The pair has recovered slightly to 125.16, however, it still down 0.29% for the day.
USD/JPY Technical Levels
The immediate resistance is located at 125.30, above which the pair could re-test the daily high of 125.84. On the flip side, a break below 124.98 could drive the pair lower to 124.34 (hourly 50-MA).