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26 Jan 2015
USD/JPY capped by 118.40
FXStreet (Edinburgh) - The bullish attempt by USD/JPY seems to have run out of legs in the 118.40 band at the beginning of the week.
USD/JPY up from the mid-117.00s
Spot managed to leave the area of the mid-117.00s in early trade, following a softer tone in the Japanese yen. According to the last CFTC report, the speculative net shorts in JPY remains alive, exerting the (almost) usual downside pressure on the Japanese currency. However, markets remain well aware of the BoJ and its (vanishing?) efforts to push inflation expectations higher, which could eventually remove selling pressure from the JPY.
USD/JPY significant levels
At the moment the pair is up 0.33% at 118.20 with the next resistance at 118.82 (high Jan.22) ahead of 118.87 (high Jan.20) and then 118.92 (61.8% of 120.82-115.85). On the flip side, a break below 117.25 (low Jan.22) would open the door to 117.18 (low Jan.21) and finally 116.93 (low Jan.19).
USD/JPY up from the mid-117.00s
Spot managed to leave the area of the mid-117.00s in early trade, following a softer tone in the Japanese yen. According to the last CFTC report, the speculative net shorts in JPY remains alive, exerting the (almost) usual downside pressure on the Japanese currency. However, markets remain well aware of the BoJ and its (vanishing?) efforts to push inflation expectations higher, which could eventually remove selling pressure from the JPY.
USD/JPY significant levels
At the moment the pair is up 0.33% at 118.20 with the next resistance at 118.82 (high Jan.22) ahead of 118.87 (high Jan.20) and then 118.92 (61.8% of 120.82-115.85). On the flip side, a break below 117.25 (low Jan.22) would open the door to 117.18 (low Jan.21) and finally 116.93 (low Jan.19).