Monday, September 21, 2015

USD/JPY: Bulls struggling to extend beyond 120

FXStreet (Mumbai) - The Japanese yen was better bid versus the US dollar in the early Asian moves, with USD/JPY fighting hard to sustain above 120 handle, amid thinner volumes as Japan remains closed until Thursday on account of national holidays.

USD/JPY: Upside restricted by 120.15 region

Currently, the USD/JPY pair trades 0.05% lower at 119.95, hovering near 120 handle. The USD/JPY pair remains largely unaffected by the Greece elections results, which revealed that Greek Prime Minister Alexis Tsipras has been voted to remain leader, receiving 35% support.

Whilst the extension of the risk-off sentiment following the FOMC decision continues to favour the traditional safe-haven appeal for the Japanese currency versus the greenback.

Meanwhile, Nikkei stays closed in observance of Respect-for-the-Aged Day, while the S&P futures recovered from -1.50% at the week open and now trades -0.05%, slightly easing the risk-off moods. While markets now await the Chinese markets to open for further moves.

Looking ahead, the pair will be influenced by a set of US macro data to be reported later in the New York session. Besides, FOMC member Lockhart is due to speak at the Buckhead Rotary Club, in Atlanta, later tonight.

USD/JPY Technical levels to consider

To the upside, the next resistance is located 120.16 (Today’s High) levels and above which it could extend 120.67 (Sept 15 High). To the downside immediate support might be located at 119.77 (Sept 17 Low) below that at 119.38 (Sept 15 Low).
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