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11 May 2015
USD/JPY strives for 120.00
FXStreet (Mumbai) - The US dollar extends its US jobs data led upward trajectory versus the Japanese yen in the early European trades, with USD/JPY almost a touch closer to 120 handle, mainly driven by solid gains in the US dollar as markets continue to cheer better than expected US labour data which re-ignited Fed rate hike bets as early as this June.
USD/JPY hits fresh session highs
Currently, the USD/JPY pair trades 0.13% higher at fresh session highs of 119.95, consolidating in the same rage from Asia. The USD/JPY pair extends gains in the European morning as the latest upbeat employment data from the US released last week continues to keep the USD buoyed.
The solid non-farm payrolls figures provided the US dollar with some boost as the release showed payrolls rose 223,000 in April. At the same time, the unemployment rate decreased to 5.4%, in line with expectations, from 5.5% seen previously.
Meanwhile, Emmanuel Ng, FX Strategist at OCBC Bank, explains, “USD-JPY may remain in lock down mode with background dollar vulnerability balanced by still sanguine investor appetite (not least from the latest rate cuts out of China).
“On the CFTC front, net leveraged JPY shorts were increased in the latest week after declining in the previous two weeks. However, note that rate differentials have moved in favour of the JPY in the past week, leaving the pair ultimately rudderless.”
There is nothing much to report today, as the US calendar remains fairly light with US labour market conditions – the only data on cards. Hence, the pair is likely to remain boosted, riding higher on Friday’s jobs data release.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120 levels and above which it could extend gains 120.30 (May 1 High) levels. To the downside immediate support might be located at 119.72 (Today’s Low) below that at 119.18 (May 6 Low) levels.
USD/JPY hits fresh session highs
Currently, the USD/JPY pair trades 0.13% higher at fresh session highs of 119.95, consolidating in the same rage from Asia. The USD/JPY pair extends gains in the European morning as the latest upbeat employment data from the US released last week continues to keep the USD buoyed.
The solid non-farm payrolls figures provided the US dollar with some boost as the release showed payrolls rose 223,000 in April. At the same time, the unemployment rate decreased to 5.4%, in line with expectations, from 5.5% seen previously.
Meanwhile, Emmanuel Ng, FX Strategist at OCBC Bank, explains, “USD-JPY may remain in lock down mode with background dollar vulnerability balanced by still sanguine investor appetite (not least from the latest rate cuts out of China).
“On the CFTC front, net leveraged JPY shorts were increased in the latest week after declining in the previous two weeks. However, note that rate differentials have moved in favour of the JPY in the past week, leaving the pair ultimately rudderless.”
There is nothing much to report today, as the US calendar remains fairly light with US labour market conditions – the only data on cards. Hence, the pair is likely to remain boosted, riding higher on Friday’s jobs data release.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120 levels and above which it could extend gains 120.30 (May 1 High) levels. To the downside immediate support might be located at 119.72 (Today’s Low) below that at 119.18 (May 6 Low) levels.