USD/JPY fades the spike to 119.80

By FXStreet FXStreet (Edinburgh) – After climbing as high as the 119.80 area in early trade, USD/JPY has now faded that initial spike and is now gyrating around 119.50/45.

USD/JPY losses traction on USD weakness

The greenback has now reverted the initial positive start on Tuesday, dragging spot back to the mid-119.00s after an ephemeral adventure to levels close to the psychological handle at 120.00. In the meantime, US Treasuries are trading on a mix tone, removing some tailwinds from the dollar and adding to the USD correction.

Ahead in the session, the US housing sector will be in the limelight via the releases of Housing Starts and Building Permits, all ahead of speeches by Fed’s Dudley, Powell and Yellen. On the Japanese front, key trade balance figures are due late today ahead of the All Industry Activity Index.

USD/JPY relevant levels

At the moment the pair is up 0.01% at 119.51 and a break above 120.05 (38.2% Fibo of 125.86-116.46) would open the door to 120.92 (200-day sma) and then 121.16 (50% Fibo of 125.86-116.46). On the other hand, the immediate support lies at 118.68 (23.6% Fibo of 125.86-116.46) followed by 116.16 (low post PBoC move Aug.24) and finally 115.82 (ytd low Jan.15).
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Source:: FX Street