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28 Aug 2015
USD/JPY keeps the range around 121 handle
FXStreet (Mumbai) - The US dollar stalled its overnight upbeat momentum and trades muted against its Japanese counterpart in the mid-Asian trades, with USD/JPY consolidating around 121 handle.
USD/JPY extends a 3-day rally
Currently, the USD/JPY pair trades modestly flat at 121.02, bouncing-off a brief dip to 120.94 lows. The major tries hard to regain ground and extend further beyond 121 barrier, as the US dollar takes a breather after the recent upsurge supported by upbeat US Q2 GDP data, which added to the recent series of positive US fundamentals.
US GDP annualized for Q2 came out at 3.7% and sharply improved from the first estimate of 2.3%, while the PCE annualized indicator for Q2 also ticked higher, from 2.9% to 3.1%.
Moreover, the yen remained better bid against the greenback despite subdued Japan’s CPI data released earlier this session. The National core CPI was flat in July after rising 0.2% y/y in June, according to the Statistics Bureau, while the more timely Tokyo CPI measure fell 0.1% year-on-year in August, the same pace as July.
Meanwhile, markets now await a host of US economic data flow due for release later in the US session for further momentum on the pair.
USD/JPY Technical levels to consider
To the upside, the next resistance is located 120.28 (Aug 26 High) levels and above which it could extend gains 120.41 (Aug 25 High) levels. To the downside immediate support might be located at 119 below that at 118.43 (Aug 26 Low).
USD/JPY extends a 3-day rally
Currently, the USD/JPY pair trades modestly flat at 121.02, bouncing-off a brief dip to 120.94 lows. The major tries hard to regain ground and extend further beyond 121 barrier, as the US dollar takes a breather after the recent upsurge supported by upbeat US Q2 GDP data, which added to the recent series of positive US fundamentals.
US GDP annualized for Q2 came out at 3.7% and sharply improved from the first estimate of 2.3%, while the PCE annualized indicator for Q2 also ticked higher, from 2.9% to 3.1%.
Moreover, the yen remained better bid against the greenback despite subdued Japan’s CPI data released earlier this session. The National core CPI was flat in July after rising 0.2% y/y in June, according to the Statistics Bureau, while the more timely Tokyo CPI measure fell 0.1% year-on-year in August, the same pace as July.
Meanwhile, markets now await a host of US economic data flow due for release later in the US session for further momentum on the pair.
USD/JPY Technical levels to consider
To the upside, the next resistance is located 120.28 (Aug 26 High) levels and above which it could extend gains 120.41 (Aug 25 High) levels. To the downside immediate support might be located at 119 below that at 118.43 (Aug 26 Low).