16 Feb 2015
USD/JPY: Yen retesting highs at 118.50 levels
FXStreet (Mumbai) - The yen stood slightly stronger versus the US dollar in the Asian session, riding high on cheerful Japanese Q4 2014 GDP numbers which revealed that the economy returned to growth after slipping into a recession technically in the previous two quarters.
Faces stiff resistance at 50-DMA
Currently, the USD/JPY traded lower by -0.14% at 118.58 levels, having previously posted day’s high at 118.78 and day’s low at 118.46. The yen extended its bullish momentum versus the greenback after bullish Japan’s GDP data showed that GDP growth rose 0.6% in the December quarter after sliding 0.5% in Q3 2014. This drove annualized economic growth to 2.2% in the December quarter from a 1.9% contraction in the September quarter. The upbeat data echoes recent comments from BOJ that it may no longer require QE further.
Moreover, the yen continues to remain buoyed against its US counterpart following the below estimates US consumer sentiments data released on Friday last week, dragged the USD lower.
USD/JPY Technical Levels
To the upside, the next resistance is located at 118.75 (50-DMA) levels and above which it could extend gains 118.91 (10-DMA) levels. To the downside immediate support might be located at 118.29 (20-DMA) levels, below that at 118 levels.
Faces stiff resistance at 50-DMA
Currently, the USD/JPY traded lower by -0.14% at 118.58 levels, having previously posted day’s high at 118.78 and day’s low at 118.46. The yen extended its bullish momentum versus the greenback after bullish Japan’s GDP data showed that GDP growth rose 0.6% in the December quarter after sliding 0.5% in Q3 2014. This drove annualized economic growth to 2.2% in the December quarter from a 1.9% contraction in the September quarter. The upbeat data echoes recent comments from BOJ that it may no longer require QE further.
Moreover, the yen continues to remain buoyed against its US counterpart following the below estimates US consumer sentiments data released on Friday last week, dragged the USD lower.
USD/JPY Technical Levels
To the upside, the next resistance is located at 118.75 (50-DMA) levels and above which it could extend gains 118.91 (10-DMA) levels. To the downside immediate support might be located at 118.29 (20-DMA) levels, below that at 118 levels.