USD/JPY takes out 200-DMA, testing 123 handle

By FXStreet FXStreet (Mumbai) – The overnight recovery from near 100-DMA at 121.18 gains further traction at the Tokyo start, with the Asian traders bidding up USD/JPY to new highs beyond 200-DMA at 121.91.

USD/JPY track Asian stocks higher

Currently, the USD/JPY pair trades 0.29% higher at fresh session highs of 121.95, having found renewed bids near hourly 10-SMA at 121.55. The US dollar appreciates sharply versus its Japanese counterpart after the Asian stocks snapped previous losses and rebounded higher, thereby lifting risk sentiment and diminishing the bids for safe-havens such as the yen.

Moreover, markets ignored the mixed set of economic data released from the US in the last NY session and resorted to unwinding their shorts before the release of a host of key US dataflow due to be reported in later today. While the main highlight remains next week’s Fed meeting, with markets awaiting the outcome on US interest rates decision.

USD/JPY Technical levels to watch

The prices trade firmer and find the immediate resistance is now placed at 122.23/27 (5-DMA/ daily R1). A break above the last, the major could test 122.55/63 (1h 100-SMA/ 10-DMA). While the immediate support is placed at 121.18 (100-DMA) below which 121.10/07 (50-WMA/ Dec 9 …read more

Source:: FX Street