24 Mar 2015
USD/JPY: Will it fall to 50-DMA?
FXStreet (Mumbai) - The USD/JPY pair suffered losses in the Asian session after a weak China data triggered a flight to safety. Ahead of the European session, the pair is trading at 119.59 levels, a few pips above the 50-DMA located at 119.38 levels.
Yen could gain on weak US CPI
The Japanese Yen could strengthen further in case we have a weaker-than-expected US CPI figure later today. Prior to the US data, we have flash PMI reports across the Eurozone due to release. Given the low rates in the Eurozone and a weaker Euro, the economists are expecting the PMI reports to surprise on the upside. The strong Eurozone data could cap gains in the Yen.
Thus, with the 10-year yield already near 1.9%, a weaker-than-expected US CPI could push the USD/JPY pair well below its 50-DMA at 119.38 levels.
USD/JPY Technical Levels
The immediate support is seen at 119.38 (50-DMA), under which losses could be extended to 118.92. On the flip side, resistance is seen at 119.88 and 120.55 levels.
Yen could gain on weak US CPI
The Japanese Yen could strengthen further in case we have a weaker-than-expected US CPI figure later today. Prior to the US data, we have flash PMI reports across the Eurozone due to release. Given the low rates in the Eurozone and a weaker Euro, the economists are expecting the PMI reports to surprise on the upside. The strong Eurozone data could cap gains in the Yen.
Thus, with the 10-year yield already near 1.9%, a weaker-than-expected US CPI could push the USD/JPY pair well below its 50-DMA at 119.38 levels.
USD/JPY Technical Levels
The immediate support is seen at 119.38 (50-DMA), under which losses could be extended to 118.92. On the flip side, resistance is seen at 119.88 and 120.55 levels.