USD/JPY bounces-off lows just ahead of 121
By FXStreet FXStreet (Mumbai) – The USD/JPY pair finally broke lower from its consolidative mode near the daily pivot as risk-off moods intensified on China slowdown concerns. The major now finds some support ahead of 121 handle and attempts a minor-recovery near 5-DMA.
USD/JPY stuck in tight range below 200-DMA
The USD/JPY pair reversed a part of BOJ-inspired gains and retreats further towards 121 handle after the European stocks accelerated to the downside on the back of renewed Chinese economic slowdown fears after the country’s poor factory data weighed on markets’ sentiment.
The Japanese currency wiped-out most losses and treads water within a striking distance of fresh session lows struck at 121.06 last hours. At the time of writing, the major trades modestly flat at 121.20 levels.
Looking ahead, the major will continue to track the risk sentiment on the markets, and will await the US ISM manufacturing PMI and core PCE price index for impact on the USD moves.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 121.47/50 (200-DMA/ round number). A break above the last, the major could test 122.22 (Dec 11 High). While to the downside, the immediate support is located at 121 …read more
Source:: FX Street
