26 Aug 2015
USD/JPY: Bulls take the driver’s seat as risk sentiment ripens
FXStreet (Mumbai) - USD/JPY jolted higher in the mid-Asian session as fresh buying interest was seen picking up near 119 handle amid improving risk sentiment with investors’ gaining composure somewhat after two back-to-back sessions of massive volatility.
USD/JPY supported above 118.50
Currently, the USD/JPY pair trades 0.40% higher at fresh session highs of 119.35, extending the recovery from 118.58 lows struck in early moves. The major climbed further this session as markets get accustomed to the ongoing weakness in Chinese equities, thus diminishing the demand for yen as a safe-haven.
While the greenback continues to benefit the risk sentiment returning to markets on one hand while markets continue to cheer the recent upbeat US home sales and consumer confidence data on the other.
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 120.41 (Aug 25 High) levels and above which it could extend gains 120.80 levels. To the downside immediate support might be located at 118.58 (Today’s Low) below that at 118.23 (Aug 25 Low).
USD/JPY supported above 118.50
Currently, the USD/JPY pair trades 0.40% higher at fresh session highs of 119.35, extending the recovery from 118.58 lows struck in early moves. The major climbed further this session as markets get accustomed to the ongoing weakness in Chinese equities, thus diminishing the demand for yen as a safe-haven.
While the greenback continues to benefit the risk sentiment returning to markets on one hand while markets continue to cheer the recent upbeat US home sales and consumer confidence data on the other.
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 120.41 (Aug 25 High) levels and above which it could extend gains 120.80 levels. To the downside immediate support might be located at 118.58 (Today’s Low) below that at 118.23 (Aug 25 Low).