USD/JPY phase of consolidation in Asia, re-takes 118

By FXStreet FXStreet (Barcelona) – USD/JPY is seen reversing a brief downward spike to session lows near 5-DMA and now re-takes 118 handle, finding support from the rising Japanese stocks.

USD/JPY bounces-off lows near 5-DMA at 117.87

Currently, the USD/JPY pair trades modestly flat at 117.96, attempting another run towards hourly 200-SMA now placed at 118.12. The USD/JPY pair continues to consolidate the upside below 200-SMA on the hourly sticks and receives fresh impetus a steady yuan fix, while positive tone on the Japanese stocks also boosts the appetite for risk and thus, diminishes the safe-haven bids for the yen. Meanwhile, the Nikkei snaps previous losses and gains 0.60% to trade around 17,350 levels.

However, the upside remains capped on the back of a mixed US dollar amid mixed sentiment in Asia, as China stocks continue to underperform. Moreover, Thursday’s weak employment data and in-line with expectations import prices index from the US, also adds to the bearish moods around the greenback. Therefore, keeps the upside capped in USD/JPY.

Looking ahead, the highly-anticipated US retail sales data is lined up for release later in the NY session. Meanwhile, broader market sentiment and the oil price-action will continue to dominate the moves in the …read more

Source:: FX Street