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30 Mar 2015
USD/JPY sidelined at 100-DMA
FXStreet (Mumbai) - The Japanese yen keeps mild losses against the US dollar in the mid-Asian session and trades modestly flat above 119 handle as traders continue to absorb weak Japanese industrial production following last Friday’s downbeat numbers.
USD/JPY stuck around 119.25
Currently, the USD/JPY pair trades marginally higher by 0.09% at 119.25 levels, in a slim range supported above 119 barrier. USD/JPY defends mild gains, forming a small doji on daily chart as the yen recovered dismal Japanese Industrial production data induced losses versus the US counterpart and now search for fresh incentives from the session ahead.
Japanese industrial output contracted for the first time in three month in February, with the combined production from Japan's mines, manufacturers, and utilities fell 3.4% m/m in February to partly offset a revised 3.7% rise in January.
However, the pair remains supported by higher treasury yields, on both 10-yr and 2-yr notes which continues to underpin the US dollar. The US dollar index which measures the relative strength of the greenback against a basket of six major currencies trades higher by 0.16% at 97.77 levels.
Meanwhile, traders now turn their attention towards crucial US macro data including Core PCE Price index figures and pending home sales data for further direction in the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.33 (Today’s High) levels and above which it could extend gains 119.85 (March 25 High) levels. To the downside immediate support might be located at 119, below that at 118.65 levels.
USD/JPY stuck around 119.25
Currently, the USD/JPY pair trades marginally higher by 0.09% at 119.25 levels, in a slim range supported above 119 barrier. USD/JPY defends mild gains, forming a small doji on daily chart as the yen recovered dismal Japanese Industrial production data induced losses versus the US counterpart and now search for fresh incentives from the session ahead.
Japanese industrial output contracted for the first time in three month in February, with the combined production from Japan's mines, manufacturers, and utilities fell 3.4% m/m in February to partly offset a revised 3.7% rise in January.
However, the pair remains supported by higher treasury yields, on both 10-yr and 2-yr notes which continues to underpin the US dollar. The US dollar index which measures the relative strength of the greenback against a basket of six major currencies trades higher by 0.16% at 97.77 levels.
Meanwhile, traders now turn their attention towards crucial US macro data including Core PCE Price index figures and pending home sales data for further direction in the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.33 (Today’s High) levels and above which it could extend gains 119.85 (March 25 High) levels. To the downside immediate support might be located at 119, below that at 118.65 levels.