USD/JPY off lows, around 123.20

By FXStreet FXStreet (Edinburgh) – The persistent weakness around the dollar has dragged USD/JPY to lows near 1230.00 the figure overnight, although it has recovered some ground since then.

USD/JPY attention to US data

Market participants have perceived yesterday’s FOMC minutes as dovish, prompting spot to correct lower from recent peaks near 123.70, albeit it remains well supported around the 123.00 neighbourhood.

Early in the European morning, Governor H.Kuroda has reiterated that the domestic economy is recovering at a moderate pace, while the virtuous cycle remains unchanged.

Next on tap in the pair will be US Initial Claims, preceding the Philly Fed manufacturing survey and speeches by Fed’s Lockhart and Fischer. Data wise in Japan, the BoJ will publish its Monthly Economic Survey on Friday.

USD/JPY levels to consider

At the moment the pair is losing 0.32% at 123.14 and a breakdown of 122.20 (low Nov.16) would aim for 121.76 (100-day sma) and then 120.87 (50% Fibo of 125.28-116.46). On the flip side, the next hurdle lies at 123.69 (high Nov.18) followed by 124.58 (high Jul.30) and finally 125.29 (high Aug.12).
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Source:: FX Street