29 Jan 2015
USD/JPY hovers around 118
FXStreet (Mumbai) - USD/JPY extended gains in the mid-Asian session, reversing losses from the previous session as traders digest the less hawkish Fed’s stance and dismal Japanese retail sales figures.
Currently, the USD/JPY traded at 117.94 levels, up 0.33% on the day, having posted fresh daily highs at 118.10 some minutes ago. The pair is seen trading higher this morning, continuing its consolidation between 117-119 zone. The yen weakened versus the greenback after the Fed reiterated its patient approach towards interest rate normalization citing that US economy is expanding at a solid pace. The FOMC Statement released overnight boosted the US dollar across the board which the pushed the pair higher.
Adding to the strength in the pair, Japanese retail sales eased in December 2014, dampening hopes that the Japanese economy is past the worst of the post-tax hike recession. Retail sales fell 0.3% on a monthly basis in December after falling at the same rate in November.
USD/JPY Technical Levels
To the upside, the next resistance is located at 118.50 levels and above which it could extend gains 118.81 levels. To the downside immediate support might be located at 117.34 levels, below that at 117 levels.
Currently, the USD/JPY traded at 117.94 levels, up 0.33% on the day, having posted fresh daily highs at 118.10 some minutes ago. The pair is seen trading higher this morning, continuing its consolidation between 117-119 zone. The yen weakened versus the greenback after the Fed reiterated its patient approach towards interest rate normalization citing that US economy is expanding at a solid pace. The FOMC Statement released overnight boosted the US dollar across the board which the pushed the pair higher.
Adding to the strength in the pair, Japanese retail sales eased in December 2014, dampening hopes that the Japanese economy is past the worst of the post-tax hike recession. Retail sales fell 0.3% on a monthly basis in December after falling at the same rate in November.
USD/JPY Technical Levels
To the upside, the next resistance is located at 118.50 levels and above which it could extend gains 118.81 levels. To the downside immediate support might be located at 117.34 levels, below that at 117 levels.