24 Jul 2015
USD/JPY: Bulls losing grip of 124 handle
FXStreet (Mumbai) - The US dollar faded a spike versus the Japanese currency in mid-Asia, sending USD/JPY back below 124 barrier. The major erased gains and trades muted as yen seems to be better bid amid tumbling Asian stocks, falling commodities prices and weaker China PMI data.
USD/JPY rejected at 124.05
Currently, the USD/JPY pair trades flat at 123.91, retreating from session highs reached at 124.05 levels. USD/JPY trades muted as traders prefer the safe-haven appeal in yen on the back of China PMI missed triggered sell-off across the board.
Chinese factory production contracted at the steepest pace in 15 months in July, according to a survey of purchasing managers, highlighting markets expect to see further efforts to stimulate growth in the coming months.
While the USD/JPY pair remains supported amid broad USD strength after booking heavy losses on Thursday as the bulls were unimpressed by solid US jobs data.
Later in the day, markets will now focus on US manufacturing PMI and new home sales data for further momentum on the major.
USD/JPY Technical Levels
To the upside, the next resistance is located 124.05 (Today’s High) levels and above which it could extend gains 124.50 (July 21 High) levels. To the downside immediate support might be located at 123.65 (July 23 Low) below that at 123.23 (July 15 Low) levels.
USD/JPY rejected at 124.05
Currently, the USD/JPY pair trades flat at 123.91, retreating from session highs reached at 124.05 levels. USD/JPY trades muted as traders prefer the safe-haven appeal in yen on the back of China PMI missed triggered sell-off across the board.
Chinese factory production contracted at the steepest pace in 15 months in July, according to a survey of purchasing managers, highlighting markets expect to see further efforts to stimulate growth in the coming months.
While the USD/JPY pair remains supported amid broad USD strength after booking heavy losses on Thursday as the bulls were unimpressed by solid US jobs data.
Later in the day, markets will now focus on US manufacturing PMI and new home sales data for further momentum on the major.
USD/JPY Technical Levels
To the upside, the next resistance is located 124.05 (Today’s High) levels and above which it could extend gains 124.50 (July 21 High) levels. To the downside immediate support might be located at 123.65 (July 23 Low) below that at 123.23 (July 15 Low) levels.