USD/JPY weaker below 117 amid observed New Year thin markets

Amid holiday-quiet New Year trading, the Yen keeps the upper edge over its American rival, sending USD/JPY lower from just ahead of 117 handle.

The losses in the major are mainly driven by declines in the US treasury yields, as a cautious tone prevails in the Asian session, with investors skeptical over what the New Year has brought along for the financial markets, in terms of global central banks’ and fiscal policies, geo-political concerns etc.

The pair is last seen exchanging hands at 116.82, up +0.15% on the day, having posted daily tops at 117.07 and a day’s low at 116.75.

Later today, the broader market sentiment will play a crucial role amid a lack of fundamental news and low liquidity, which could exaggerate fx moves across the board.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 117.01/07 (20-DMA/ daily high). A break above the last, the major could test 117.22 (Dec 30 high) and 117.50 (psychological levels) beyond the last. While to the downside, the immediate support is seen at 116.45 (daily S3) next at 116.05 (2-week lows) and below that at 115.80 (psychological levels).