17 Dec 2014
USD/JPY extend gains, eyes Fed’s language
FXStreet (Mumbai) - The Japanese yen continued its slide against the greenback as traders raised expectations that the much awaited FOMC statement will turn bullish for the US dollar.
Currently, USD/JPY hits fresh day’s high of 117.19 levels, trading 0.66% higher on the day. The US dollar regained strength versus the Japanese counterpart as markets increased bets that Federal Reserve (Fed) will replace the "considerable time" phrase with "patient" in its rate hike outlook. The traders also expect that the Fed will announce a move which may take them closer to the tightening process next year.
Moreover, a weaker than expected Japanese trade data also supported the gains USD/JPY.
USD/JPY Technical Levels
To the upside, the next resistance is located at 117.50 (50-day SMA) levels and above which it could extend gains to 118.06 (Nov 19 High) levels. To the downside immediate support might be located at 116.72 (20-day SMA), below that at 116 levels.
Currently, USD/JPY hits fresh day’s high of 117.19 levels, trading 0.66% higher on the day. The US dollar regained strength versus the Japanese counterpart as markets increased bets that Federal Reserve (Fed) will replace the "considerable time" phrase with "patient" in its rate hike outlook. The traders also expect that the Fed will announce a move which may take them closer to the tightening process next year.
Moreover, a weaker than expected Japanese trade data also supported the gains USD/JPY.
USD/JPY Technical Levels
To the upside, the next resistance is located at 117.50 (50-day SMA) levels and above which it could extend gains to 118.06 (Nov 19 High) levels. To the downside immediate support might be located at 116.72 (20-day SMA), below that at 116 levels.