Monday, October 12, 2015

USD/JPY clings to hourly 100-SMA

FXStreet (Mumbai) - The USD/JPY pair stalled its recovery-mode at hourly 20-SMA and retraced slightly to trade within the familiar ranges on the 120 handle.

USD/JPY capped below daily R1

Currently, the USD/JPY pair trades modestly flats at 120.17, supported above 120.09 lows, which coincides with the hourly 100-SMA. The USD/JPY continues to trades around a flat-line ahead of the European open as thin volumes and no fresh fundamental triggers keep the major side-lined.

The pair is divided by the dropping 2015 Fed rate-hike bets on one hand and further easing talks from the BOJ later this month.

However, in the week ahead, inflation figures from the US and China while lot of Fed speaks may provide that much-needed impetus to the dollar-yen pair and thus, might break away from the recent range-trade.

USD/JPY Technical levels to consider

To the upside, the next resistance is located at 120.25/31 (daily R1 & R2) beyond which 120.56/60 (Oct 5 Highs & 50-DMA) could be tested. Above the last, the pair could climb further towards 121/121.02 (round number & Sept 17 High). To the downside immediate support might be located at 120.04/05 (Hourly 50 & 200-SMA), below which 119.22-21 (Sept 29 & 24 Lows) could be exposed. A breach of the last, the pair could drop to 118.83 (Sept 8 Low) levels.
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