USD/JPY looks to regain 114 amid risk-recovery & bullish DXY
|The USD/JPY pair stages almost 1 big figure recovery so far this session and now makes headways towards 114 handle amid broad based US dollar strength and easing risk-off trades.
USD/JPY rises back to test 5-DMA at 113.89
The dollar-yen is on a roll higher after a weaker opening in Asia this Monday, after risk-off gripped market as the Asian traders reacted negatively to the Italian PM Renzi’s defeat in Sunday’s referendum and to his resignation to the president for consideration tomorrow.
However, the bulls were quickly rescued by a broadly higher greenback as risk sentiment recovered somewhat, as markets continue to cheer Dec Fed rate hike talks, in wake of upbeat NFP report published last Friday. The major is last seen changing hands at 113.80, recovering from a daily low of 112.88, up +0.25% on the day, while the Nikkei 225 index recovers to 18,330 points, now dropping -0.52%.
In the day ahead, the major will get influenced by persisting risk trends as markets digest the Italian referendum news, while attention gradually shifts towards the US ISM services and LMCI data due later in the NA session. Besides Fedspeaks will also remain in focus.
USD/JPY Technical levels to watch
The major finds immediate resistance at 114.50 (psychological levels). A break above the last, the major could test 114.83 (10-month high) and 115 (zero figure) beyond the last. While to the downside, the immediate support is seen at 113.29 (10-DMA) next at 112.88 (daily low) and below that at 112.64 (daily S2).
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.