18 Aug 2015
USD/JPY: Yen better bid on safe-haven appeal, Japan’s Honda
FXStreet (Mumbai) - The yen reversed early losses and defends gains versus the US dollar in the mid-European session, with USD/JPY slightly pressured closer to 124 handle, as flighty to safety on China stocks crash and the latest comments from Japan PM Abe’s Advisor Honda boosted the sentiment around the Japanese currency.
USD/JPY recovers from 124.18
Currently, the USD/JPY pair trades -0.07% lower at 124.30, retreating from session lows posted at 124.18. The yen picked-up lost strength and pressured the greenback after traders resorted to safety assets such as yen following tumbling Chinese equities and Thailand bombing.
Adding to this, Japan PM Abe’s advisor Honda was crossing the wires now noting that Japan doesn’t require additional stimulus currently while also suggesting that negative effects of the sales tax hike is waning. Honda’s comments backed the ongoing strength in the yen.
On the data space, US macro calendar offers housing starts and building permits data due later tonight ahead of CPI and FOMC minutes due on Wednesday.
USD/JPY Technical Levels
To the upside, the next resistance is located 124.80 (Aug 10 High) levels and above which it could extend gains 125.08 (Aug 7 High) levels. To the downside immediate support might be located at 124.07 (Aug 13 Low) below that at 123.77 (Aug 12 Low) levels.
USD/JPY recovers from 124.18
Currently, the USD/JPY pair trades -0.07% lower at 124.30, retreating from session lows posted at 124.18. The yen picked-up lost strength and pressured the greenback after traders resorted to safety assets such as yen following tumbling Chinese equities and Thailand bombing.
Adding to this, Japan PM Abe’s advisor Honda was crossing the wires now noting that Japan doesn’t require additional stimulus currently while also suggesting that negative effects of the sales tax hike is waning. Honda’s comments backed the ongoing strength in the yen.
On the data space, US macro calendar offers housing starts and building permits data due later tonight ahead of CPI and FOMC minutes due on Wednesday.
USD/JPY Technical Levels
To the upside, the next resistance is located 124.80 (Aug 10 High) levels and above which it could extend gains 125.08 (Aug 7 High) levels. To the downside immediate support might be located at 124.07 (Aug 13 Low) below that at 123.77 (Aug 12 Low) levels.