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14 Apr 2015
USD/JPY supported at 119.70
FXStreet (Mumbai) - The yen continues to strengthen versus the US dollar in mid-Asian trades, extending gains from the previous session after the Japanese PM's adviser, Koichi Hamada said the nation's currency is too weak, in light of purchasing parity.
USD/JPY trades around 10-DMA
Currently, the USD/JPY pair trades lower by -0.22% at 119.87 levels, retreating from session highs posted just ahead of 120 barrier. The USD/JPY pair remains in red largely on yen strength riding higher on the back of Japan’s Hamada’s comments that yen at 105 per dollar would be appropriate and that he doesn't think yen will drop much further.
Moreover, weakness seen in 10-yr and 2-yr yields on US treasuries standing at 1.921% and 0.532% respectively, both losing near 1%, also continues to weigh on the USD/JPY pair. The US dollar index remains subdued near 99.71 levels, reversing from four week highs reached yesterday at 100.27.
Meanwhile, this week's schedule offers plenty of data to watch, with US production and retail sales in focus as well as China's GDP to provide further momentum on the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120.21 (5-DMA) levels and above which it could extend gains 120.88 (April 13 High) levels. To the downside immediate support might be located at 119.75 (20-DMA) below that at 119.35 (100-DMA) levels.
USD/JPY trades around 10-DMA
Currently, the USD/JPY pair trades lower by -0.22% at 119.87 levels, retreating from session highs posted just ahead of 120 barrier. The USD/JPY pair remains in red largely on yen strength riding higher on the back of Japan’s Hamada’s comments that yen at 105 per dollar would be appropriate and that he doesn't think yen will drop much further.
Moreover, weakness seen in 10-yr and 2-yr yields on US treasuries standing at 1.921% and 0.532% respectively, both losing near 1%, also continues to weigh on the USD/JPY pair. The US dollar index remains subdued near 99.71 levels, reversing from four week highs reached yesterday at 100.27.
Meanwhile, this week's schedule offers plenty of data to watch, with US production and retail sales in focus as well as China's GDP to provide further momentum on the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120.21 (5-DMA) levels and above which it could extend gains 120.88 (April 13 High) levels. To the downside immediate support might be located at 119.75 (20-DMA) below that at 119.35 (100-DMA) levels.