25 Aug 2015
USD/JPY: Bulls regain control, re-attempts 120
FXStreet (Mumbai) - After recovering from a brief dip below 119 handle, the USD/JPY is seen extending its corrective mode towards 120 levels in the mid-European session, as the USD bulls have taken over complete control amid shorts unwinding on rising appetite for riskier assets.
USD/JPY rises more than 100-pips intraday
Currently, the USD/JPY pair trades nearly 1.5% higher at 119.97, finally testing 120 levels once again. The major keeps pushing higher as the greenback accelerated gains against its major counterparts mainly on unwinding of shorts after risk-on sentiment returned.
However, any spike towards 120 levels may be considered as selling the rallies as the US dollar remains broadly undermined after the recent China chaos pushed back expectations of rate-hike in Sept to early 2016, which negatively weighs on the greenback.
Later in the session, services PMI, consumer confidence and new home sales from the US are due, which may lead the direction for further USD moves.
USD/JPY Technical levels to consider
To the upside, the next resistance is located 120.11 (Today’s High)) levels and above which it could extend gains 120.80 levels. To the downside immediate support might be located at 118.86 (Today’s Low) below that at 118.30 (March levels).
USD/JPY rises more than 100-pips intraday
Currently, the USD/JPY pair trades nearly 1.5% higher at 119.97, finally testing 120 levels once again. The major keeps pushing higher as the greenback accelerated gains against its major counterparts mainly on unwinding of shorts after risk-on sentiment returned.
However, any spike towards 120 levels may be considered as selling the rallies as the US dollar remains broadly undermined after the recent China chaos pushed back expectations of rate-hike in Sept to early 2016, which negatively weighs on the greenback.
Later in the session, services PMI, consumer confidence and new home sales from the US are due, which may lead the direction for further USD moves.
USD/JPY Technical levels to consider
To the upside, the next resistance is located 120.11 (Today’s High)) levels and above which it could extend gains 120.80 levels. To the downside immediate support might be located at 118.86 (Today’s Low) below that at 118.30 (March levels).