Tuesday, November 17, 2015

USD/JPY upside in favour testing 123.20 resistance

FXStreet (Guatemala) - USD/JPY is currently trading at 123.17 with a high of a123.27 and a low of 122.21.

The tragic circumstances in Paris that occurred after the NY close last week left a bearish gap in the charts that has been bought into and exceeded on a rally in late Asia and European markets. However, the situation leaves a dark cloud over the EZ with complications around the refugee crisis and implications that compromises an already struggling economy.

The Yen will usually benefit on risk-off flows and lower stocks, but at this time, markets are swallowing up the risk factors with stocks on the up in the US and little changed in Europe. There is more concentration on a strong dollar while fundamentals in the US offer a pending rate hike to possibly come of the December FOMC meeting and along with Japan technically falling back into recession with the Q3 GDP data yesterday, the upside in crystalised on divergences between the BoJ and Fed.

USD/JPY levels

Technically, key support comes in at 122.80, 121.27 (200 DMA) and one the wide, 120.00, 117.86 and the 2012-2015 uptrend. The price remains with a bullish bias above here targeting June highs through the 125 handle and past 123.72 R3 key resistance.
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