USD/JPY headed back to Tuesday's two-month lows
|After yesterday's brief pause, the USD/JPY pair resumed with its near-term weakening trend and reversed previous session's tepid recovery gains.
Persistent greenback selling pressure, with the key US Dollar Index reversing Wednesday's rather weak recovery gains and hitting the lowest level since mid-November, against a backdrop of less hawkish Fed has been the key factor driving the pair lower on Thursday.
This coupled with the prevalent risk-off mood is further boosting the Japanese Yen's safe-haven demand and collaborating to the pair's offered tone, dragging it closer to Tuesday's two-month lows. The pair was last seen trading around 112.60-55 region.
Later during the day, BoE infused volatility in the FX market would derive the safe-haven demand and provide some impetus during European session and from the US, traders will confront the release of weekly jobless claims.
Technical levels to watch
On a sustained weakness below 112.50 area, the pair seems to break through 112.17 level (Tuesday's low) and accelerate the slide towards 112.00 round figure mark. A follow through selling pressure is likely to continue dragging the pair further towards 111.60 support area (Nov. 29 low) ahead of 111.35 (Nov. 28 low).
Meanwhile on the upside, recovery attempts back above 113.00 handle might now confront resistance near 113.25 level above which a bout of short-covering could lift the pair towards 113.75-80 horizontal resistance, en-route 114.00 handle.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.