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11 Sep 2015
USD/JPY: Yen bulls back in charge as European stocks drop
FXStreet (Mumbai) - The Japanese currency eases-off session highs versus its American rival in the European morning, now lifting USD/JPY back near 120.50 levels.
USD/JPY recovers from 120.38 lows
Currently, the USD/JPY pair trades -0.10% lower at 120.50, having faced rejection at 120.96. The major lost momentum and fell into the red this session as the yen bulls fought back control after five consecutive days of losses.
The yen regained strength versus the US dollar as risk-off sentiment resurfaced amid falling European indices and oil prices. Major European benchmarks slipped as nervousness gripped the markets as Fed decision looms. While the oil prices dropped sharply after Goldman Sachs cut price forecasts for 2015 and 2016.
Later in the US session, US PPI indices for August are due, expected to slightly decrease from previous levels on a monthly basis. Moreover, the University of Michigan consumer confidence gauge for September is due and should remain at the August level of 91.9.
USD/JPY Technical levels to consider
To the upside, the next resistance is located 120.96 (Today’s High) levels and above which it could extend 121.34 (Sept 10 High). To the downside immediate support might be located at 119.95 (Sept 10 Low) below that at 119.62 (Sept 3 Low).
USD/JPY recovers from 120.38 lows
Currently, the USD/JPY pair trades -0.10% lower at 120.50, having faced rejection at 120.96. The major lost momentum and fell into the red this session as the yen bulls fought back control after five consecutive days of losses.
The yen regained strength versus the US dollar as risk-off sentiment resurfaced amid falling European indices and oil prices. Major European benchmarks slipped as nervousness gripped the markets as Fed decision looms. While the oil prices dropped sharply after Goldman Sachs cut price forecasts for 2015 and 2016.
Later in the US session, US PPI indices for August are due, expected to slightly decrease from previous levels on a monthly basis. Moreover, the University of Michigan consumer confidence gauge for September is due and should remain at the August level of 91.9.
USD/JPY Technical levels to consider
To the upside, the next resistance is located 120.96 (Today’s High) levels and above which it could extend 121.34 (Sept 10 High). To the downside immediate support might be located at 119.95 (Sept 10 Low) below that at 119.62 (Sept 3 Low).