3 Apr 2015
USD/JPY on way for a third consecutive weekly loss
FXStreet (Mumbai) - The USD/JPY pair could end lower for the third consecutive week as the demand for the safe haven assets rose after a weaker-than-expected US non-farm payrolls release.
Safe havens rise
The Japanese Yen shot higher, pushing the USD/JPY pair to a session low of 118.70 after the non-farm payrolls data for March printed significantly lower than the consensus estimates. The weakness in the US equity futures further supported the safe haven Yen.
Meanwhile, the 10-year yield in the US also dropped to an eight-week low of 1.082%. The USD/JPY pair is known to mimic the moves in the benchmark bond yield in the US. Moreover, the risk aversion could result in the USD/JPY pair finishing the current week below its previous week’s closing of 119.16.
USD/JPY Technical Levels
The immediate support is located at 118.70, under which losses could be capped at 118.31 levels. On the other hand, a rise above 119.17 (100-DMA), could see the pair re-test its 50-DMA at 119.70.
Safe havens rise
The Japanese Yen shot higher, pushing the USD/JPY pair to a session low of 118.70 after the non-farm payrolls data for March printed significantly lower than the consensus estimates. The weakness in the US equity futures further supported the safe haven Yen.
Meanwhile, the 10-year yield in the US also dropped to an eight-week low of 1.082%. The USD/JPY pair is known to mimic the moves in the benchmark bond yield in the US. Moreover, the risk aversion could result in the USD/JPY pair finishing the current week below its previous week’s closing of 119.16.
USD/JPY Technical Levels
The immediate support is located at 118.70, under which losses could be capped at 118.31 levels. On the other hand, a rise above 119.17 (100-DMA), could see the pair re-test its 50-DMA at 119.70.