USD/JPY: Bids stalled at 50-DMA post-China trade

Dhwani Mehta FXStreet

The USD/JPY pair is seen reversing a part of intraday gain, after a fresh risk-aversion took the markets off their feet and rescued the JPY bulls somewhat, in wake of softer Chinese trade balance data.

The spot was last seen exchanging hands at 115, easing-off session tops reached at 115.18 earlier on the day, although advancing +0.24% on the day. Further, the bulls ran into 50-DMA resistance as the rebound in the Japanese stocks lost legs, while upside surprise in the inflation expectations, as reported in the BOJ’s quarterly survey underpinned the sentiment around the yen.

Markets appear to have looked past a non-event Fed Chair Yellen’s speech, as all eyes now remain on a fresh batch of US macro news, with key focus on the US PPI, due later in the NA session.

USD/JPY Technical levels to watch

The major finds immediate resistance at 115.18 (50-DMA). A break above the last, the major could test 115.50 (psychological levels) and 115.64 (1h 100-SMA) beyond the last. While to the downside, the immediate support is seen at 114.66 (daily pivot) next at 114.23 (Dec 11 low) and below that at 114 (round number).

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 116.46

42% Bullish
33% Bearish
25% Sideways

Bias Bullish

1 Month

Avg Forecast 116.19

50% Bullish
42% Bearish
8% Sideways

Bias Bullish

1 Quarter

Avg Forecast 117.09

50% Bullish
31% Bearish
19% Sideways

Bias Bullish

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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