6 Aug 2015
USD/JPY consolidates below 125
FXStreet (Mumbai) - The US dollar edges slightly lower versus the Japanese currency in the mid-Asian session, with USD/JPY keeping range in the upper band of 124 handle as the US bulls take a breather after rallying to fresh two-month highs following stronger than expected US services sector data.
USD/JPY capped at 124.86
Currently, the USD/JPY pair trades -0.11% lower at 124.73, languishing near session lows reached at 124.71. The greenback extends its overnight side-trend versus the yen and eases off fresh two month highs reached at 125.03 on Wednesday as traders digested the recent batch of US data.
Earlier on Wednesday, the ADP employment change for July dropped sharply, from 237,000 in June to only 185,000 in July. This led to some losses for the greenback, although it managed to erase nearly all of them after the Markit's services sector PMI for July printed 55.7 and ticked higher from June's 55.2, surprising markets on the upside.
Looking ahead, the USD/JPY pair is likely to resume the upside ahead of weekly jobless claims due later today while Friday’s BOJ policy decision and US NFP may provide fresh direction for the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located 125.03 (Aug 5 High) levels and above which it could extend gains 125.69 (June 8 High) levels. To the downside immediate support might be located at 124.32 (June 5 Low) below that at 124 levels.
USD/JPY capped at 124.86
Currently, the USD/JPY pair trades -0.11% lower at 124.73, languishing near session lows reached at 124.71. The greenback extends its overnight side-trend versus the yen and eases off fresh two month highs reached at 125.03 on Wednesday as traders digested the recent batch of US data.
Earlier on Wednesday, the ADP employment change for July dropped sharply, from 237,000 in June to only 185,000 in July. This led to some losses for the greenback, although it managed to erase nearly all of them after the Markit's services sector PMI for July printed 55.7 and ticked higher from June's 55.2, surprising markets on the upside.
Looking ahead, the USD/JPY pair is likely to resume the upside ahead of weekly jobless claims due later today while Friday’s BOJ policy decision and US NFP may provide fresh direction for the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located 125.03 (Aug 5 High) levels and above which it could extend gains 125.69 (June 8 High) levels. To the downside immediate support might be located at 124.32 (June 5 Low) below that at 124 levels.