Monday, September 21, 2015

USD/JPY pares losses, re-attempts 120

FXStreet (Mumbai) - USD/JPY recovered most losses and now trades modestly flat heading into the European opening bells, as the greenback pared early losses against its major competitors amid easing risk-off moods.

USD/JPY rises from 119.73

Currently, the USD/JPY pair trades modestly flat at 119.97, making another attempt to regain 120 handle and beyond. The USD/JPY pair bottomed around 119.70 region in the late-Asian trades and since then extended its recovery towards 120 barrier as risk-aversion eased a bit as most major Asian indices paring losses while the Shanghai composite rallies +1.70% towards close.

Investors risk appetite is dampened, as markets appear concerned about the Fed’s outlook for the strength of the global economy.

However, the yen keeps the upper edge versus the greenback as the European indices started the week on a weaker note with the pan-European index, the Euro Stoxx 50, down -0.23% at open.

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 119.38 (Sept 15 Low) below that at 119 levels.
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