3 May 2016
USD/JPY: A phase of consolidation near 18-month lows
Having bottomed out just ahead of 106 handle in early trades, the USD/JPY pair steadies near eighteen-month lows amid persistent USD softness and a better risk sentiment.
USD/JPY: 105.50 eyed?
The JPY bulls bounced back on the bids in the previous session, with the yen now extending its upbeat momentum versus the greenback into fourth day this Tuesday.
The bearish sentiment around USD/JPY can be also attributed to the continued selling pressure seen in the US dollar against its major peer amid poor economic data and falling odds of a summer-time interest rate hike by the Fed. At the moment, the major hovers around 106.20 zone, languishing near fresh 18-month lows struck at 106.05 earlier today, still down -0.23% on the day.
However, the downside found some support on the back of a favourable sentiment towards riskier assets such as the equities, while light trading also kept the losses in check. Japan’s markets remain closed until Friday on account of public holidays.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 106.69/76 (5-DMA/ daily R1). A break above the last, the major could test 107 (round number). While to the downside, the immediate support is seen at 106.05/00 (Multi-month lows) and below that at 105.50 (Oct 2014 levels).
USD/JPY: 105.50 eyed?
The JPY bulls bounced back on the bids in the previous session, with the yen now extending its upbeat momentum versus the greenback into fourth day this Tuesday.
The bearish sentiment around USD/JPY can be also attributed to the continued selling pressure seen in the US dollar against its major peer amid poor economic data and falling odds of a summer-time interest rate hike by the Fed. At the moment, the major hovers around 106.20 zone, languishing near fresh 18-month lows struck at 106.05 earlier today, still down -0.23% on the day.
However, the downside found some support on the back of a favourable sentiment towards riskier assets such as the equities, while light trading also kept the losses in check. Japan’s markets remain closed until Friday on account of public holidays.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 106.69/76 (5-DMA/ daily R1). A break above the last, the major could test 107 (round number). While to the downside, the immediate support is seen at 106.05/00 (Multi-month lows) and below that at 105.50 (Oct 2014 levels).