The Japanese currency appears to regain some ground over the last hours, with markets digesting latest comments from Japan’s officials amid news of fire shorts reported in the US.
USD/JPY heading towards daily lows?
The dollar-yen pair failed to take on the recovery mode further beyond 5-DMA barrier, as the yen pares losses following latest headlines from Japanese finance minister Aso and economy minister Ishihara.
Japan’s Ishihara noted that Japan’s economy remains on a moderate recovery path, while Aso said that positive effects from negative rates are seen emerging, both comments turning JPY-positive.
Moreover, fresh reports of shooting at the JFK airport in New York, also fanned demand for safe-havens such as yen, capping further gains in the USD/JPY pair. At the time of writing, USD/JPY trades at 101.38, unable to surpass stiff resistance place at 101.45 (5-DMA), still up +0.11% on the day.
However, the losses remain capped as a big miss on the Japanese GDP data continues to undermine the sentiment around the yen. Looking ahead, markets now await the US datasets due later today ahead of Tuesday’s flurry of economic releases from the US docket.
USD/JPY Technical levels to watch
In terms of technicals , the immediate resistance is located at 101.45 (5-DMA/ daily high). A break above the last, the major could test 102 (psychological levels). While to the downside, the immediate support is seen at 101.14 (daily low/ S1) and below that at 100.98 (Aug 12 low).
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