Wednesday, October 14, 2015

USD/JPY stuck in narrow ranges, bounces-off 119.50

FXStreet (Mumbai) - The USD/JPY extends its range-trade as we progress towards the European opening bells, recovering a brief dip towards the mid-point of 119 handle.

USD/JPY recovery stalls near hourly 20-SMA

Currently, the USD/JPY pair trades -0.07% lower at 119.67, recovering from strong support located near 119.50 – confluence zone of daily S1 and Oct 13 Low. USD/JPY extends the choppy-trend, although within limited ranges, as markets await the upcoming US fundamentals for fresh cues on the pair.

Meanwhile, the yen bulls continue to remain in charge as the demand for safety-assets is seen on the rise with risk-appetite crushed by Chinese macro data and by the latest news crossing the wires that the Japanese Government lowered its economic assessment for the first time since 2014.

In the day ahead, the major will remain influenced by the key US retail sales and PPI numbers while the broader market sentiment will also direct further moves.

USD/JPY Technical levels to consider

To the upside, the next resistance is located at 119.88 (hourly 50-SMA) beyond which 120.08 (20-DMA) could be tested. Above the last, the pair could climb further towards 120.34/41 (daily R2 & 50-DMA). To the downside immediate support might be located at 119.50 (daily S1), 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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