28 Jul 2015
USD/JPY: Bulls offered support near 123.30
FXStreet (Mumbai) - The US dollar was better bid versus its Japanese counterpart in the early Asian trades, now lifting USD/JPY slightly away from fresh two-week lows reached just ahead of 123 handle on Monday. The major seems to have found some support as the US dollar halted its previous downslide, while traders continue to digest the recent US upbeat durable goods data amid a data-empty Asian calendar ahead.
USD/JPY hovers around 20-DMA
Currently, the USD/JPY pair trades modestly flat at 123.28, finding good support at 123.01 levels. USD/JPY reversed previous losses and is seen consolidating around 20-DMA as yen bulls take a breather in its rally awaiting fresh cues from Chinese stock markets after the Shanghai index plummeted over 8% on Monday amid renewed China slowdown fears.
Meanwhile, traders cheer solid durable goods orders data from the US released last session amid lack of macro updates in Asia. American data was largely ignored by the markets on Monday, even though the US durable goods orders jumped beyond expectations in June from a revised -2.1% to 3.4%, while the core gauge ticked higher to 0.8% from a revised -0.1%.
Looking ahead, traders now eagerly await Federal Open Market Committee (FOMC) statement, scheduled to be released on Wednesday. Market expects to see a firmer tone come out of the Federal Reserve (Fed), confirming the possibility of a rate hike in September.
Analysts at TD Securities noted, “The Fed may use the July FOMC statement to set up the September hike, by nudging the market further with tweaks to the language. Most likely this comes from the upgrades to economic conditions in the first paragraph."
USD/JPY Technical Levels
To the upside, the next resistance is located 123. 85 (July 26 High) levels and above which it could extend gains 124.12 (July 24 High) levels. To the downside immediate support might be located at 123.01 (July 27 Low) below that at 122.57 (July 3 Low) levels.
USD/JPY hovers around 20-DMA
Currently, the USD/JPY pair trades modestly flat at 123.28, finding good support at 123.01 levels. USD/JPY reversed previous losses and is seen consolidating around 20-DMA as yen bulls take a breather in its rally awaiting fresh cues from Chinese stock markets after the Shanghai index plummeted over 8% on Monday amid renewed China slowdown fears.
Meanwhile, traders cheer solid durable goods orders data from the US released last session amid lack of macro updates in Asia. American data was largely ignored by the markets on Monday, even though the US durable goods orders jumped beyond expectations in June from a revised -2.1% to 3.4%, while the core gauge ticked higher to 0.8% from a revised -0.1%.
Looking ahead, traders now eagerly await Federal Open Market Committee (FOMC) statement, scheduled to be released on Wednesday. Market expects to see a firmer tone come out of the Federal Reserve (Fed), confirming the possibility of a rate hike in September.
Analysts at TD Securities noted, “The Fed may use the July FOMC statement to set up the September hike, by nudging the market further with tweaks to the language. Most likely this comes from the upgrades to economic conditions in the first paragraph."
USD/JPY Technical Levels
To the upside, the next resistance is located 123. 85 (July 26 High) levels and above which it could extend gains 124.12 (July 24 High) levels. To the downside immediate support might be located at 123.01 (July 27 Low) below that at 122.57 (July 3 Low) levels.