FXStreet (Mumbai) - A renewed bout of buying interest seen in the USD in last hours appear to wane, now sending USD/JPY back near the opening price.
USD/JPY capped below Tuesday’s high
Currently, the USD/JPY pair trades flat at 123.40, keeping range-trade intact. The dollar-yen pair failed to take out Tuesday’s high and reverted to familiar range seen in early trades, as the mixed sentiment on the Asian indices coupled with falling commodities prices boosts the demand for safe-havens such as JPY.
Moreover, the major is seen correcting a part of heavy gains booked yesterday after the USD bulls jumped to the highest levels since Friday after a Dec rate hike was confirmed by upbeat US inflation numbers. The US CPI rebounded 0.2% in October, matching forecast, and following an unrevised 0.2% drop in September.
Ahead in the day, the minutes of the Fed Oct 28 meeting will take centre stage ahead of US housing data. More so, Thursday’s BOJ monetary policy decision will also keep the traders on the edge.
USD/JPY Technical levels to watch
The prices trades firmer above 123 handle and now faces immediate resistance at 123.49/50 (Nov 17 High/ psychological levels). A break above the last, the major could test 123.61 (Nov 9 High). To the downside, the immediate support in sight at 123 (daily pivot/ 5 &10-DMA) below which 122.73 (Nov 11 Low) would be tested. A break below the last, 122.20 (Nov 16 Low) comes into the picture.
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