9 Jul 2015
USD/JPY extends recovery in Asia, reclaims 121 and beyond
FXStreet (Mumbai) - The yen bulls took a back seat versus the US dollar in mid-Asian session, allowing USD/JPY to breathe a bout of fresh air above 121 handle. The major extends its overnight recovery from fresh 2-month lows mainly driven by short-covering rally after suffering heavy losses on Wednesday.
USD/JPY rises from 120.58
Currently, the USD/JPY pair trades 0.31% higher at 121.09, having posted day’s high at 121.30 and day’s low at 120.58. The USD/JPY pair staged a solid comeback in Asia as traders resorted to locking-in gains on the USD shorts after the major was heavily offered on Wednesday.
USD/JPY witnessed nearly 200 pips fall on Wednesday after the Japanese currency benefited from its traditional safe-haven status, as China and Greece add to global risk aversion across the fx space.
The major printed fresh 2-month lows at 120.42 in overnight trades as markets continue to digest FOMC minutes which revealed that Fed appeared less eager to start hiking policy in light of possible lingering Q1 softness and potential weakness from abroad that could spill over to the US.
Moving ahead, markets continue to monitor Greece developments as Euro group meetings continue later today. While China worries may also have major impact on the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located 121.30 (Today’s High) levels and above which it could extend gains 121.78 (May 25 High) levels. To the downside immediate support might be located at 120.58 (Today’s Low) below that at 120 levels.
USD/JPY rises from 120.58
Currently, the USD/JPY pair trades 0.31% higher at 121.09, having posted day’s high at 121.30 and day’s low at 120.58. The USD/JPY pair staged a solid comeback in Asia as traders resorted to locking-in gains on the USD shorts after the major was heavily offered on Wednesday.
USD/JPY witnessed nearly 200 pips fall on Wednesday after the Japanese currency benefited from its traditional safe-haven status, as China and Greece add to global risk aversion across the fx space.
The major printed fresh 2-month lows at 120.42 in overnight trades as markets continue to digest FOMC minutes which revealed that Fed appeared less eager to start hiking policy in light of possible lingering Q1 softness and potential weakness from abroad that could spill over to the US.
Moving ahead, markets continue to monitor Greece developments as Euro group meetings continue later today. While China worries may also have major impact on the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located 121.30 (Today’s High) levels and above which it could extend gains 121.78 (May 25 High) levels. To the downside immediate support might be located at 120.58 (Today’s Low) below that at 120 levels.