27 Apr 2015
USD/JPY retreats from 119.42
FXStreet (Mumbai) - USD/JPY retreated to the familiar range after a brief spike to fresh session highs in the mid-European session, after the yen dipped to lows versus the greenback on reports that Fitch downgraded Japan’s rating to 'A' from 'A+, keeping the country’s outlook as stable.
USD/JPY back around 119.20 levels
Currently, the USD/JPY pair trades higher by 0.14% at 119.17, having posted fresh session highs at 119.42 on the news. The yen dropped to fresh session lows versus the USD after reports hit the wires of Japan's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) downgrade to 'A' from 'A+' by Fitch. The Outlooks on the Long-Term IDRs are Stable.
The rating agency cited the reasons for the downgrade as Japanese government’s inability to include sufficient structural fiscal measures in its budget for the fiscal year April 2015-March 2016 (FY15) to replace a deferred consumption tax increase.
Moreover, the strengthening US dollar across the board also keep the USD/JPY supported. The US dollar index which measures the relative strength of the greenback against a basket of six major currencies now trades at 97.31, retreating from session highs at 97.41.
Meanwhile, markets now turn their focus towards Wednesday’s FOMC statement as the EUR and NA Calendar remains relatively light at the start of the week.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.45 (April 20 High) levels and above which it could extend gains 120.76 (April 15 High) levels. To the downside immediate support might be located at 118.51 (April 20 Low) below that at 118.30 (March 26 Low) levels.
USD/JPY back around 119.20 levels
Currently, the USD/JPY pair trades higher by 0.14% at 119.17, having posted fresh session highs at 119.42 on the news. The yen dropped to fresh session lows versus the USD after reports hit the wires of Japan's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) downgrade to 'A' from 'A+' by Fitch. The Outlooks on the Long-Term IDRs are Stable.
The rating agency cited the reasons for the downgrade as Japanese government’s inability to include sufficient structural fiscal measures in its budget for the fiscal year April 2015-March 2016 (FY15) to replace a deferred consumption tax increase.
Moreover, the strengthening US dollar across the board also keep the USD/JPY supported. The US dollar index which measures the relative strength of the greenback against a basket of six major currencies now trades at 97.31, retreating from session highs at 97.41.
Meanwhile, markets now turn their focus towards Wednesday’s FOMC statement as the EUR and NA Calendar remains relatively light at the start of the week.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.45 (April 20 High) levels and above which it could extend gains 120.76 (April 15 High) levels. To the downside immediate support might be located at 118.51 (April 20 Low) below that at 118.30 (March 26 Low) levels.