USD/JPY: trading in familiar ranges and neutral

By FXStreet FXStreet (Guatemala) – USD/JPY is currently trading at 120.20 with a high of 120.55 and a low of 119.61.

USD/JPY is trading within familiar ranges and supply is a by on dips, as demonstrated today with the major picked up from offers to new lows for the week at 119.61 and taken back onto the 120 handle.

The theme remains with the Fed tipped to start hiking rates before the year is out and risk-off sentiment supports the Yen. Japan will return from their holiday’s, so liquidity will be returning for CPI’s from Japan later in the week and key data from the US, including durable goods orders. GDP and PCE. Data will be closely monitored in respect to timings of a Fed hike.

USD/JPY levels

Technically, the downside, we have made fresh lows below the congested 120.00 area and the MA’s are offering a bearish bias. 120.87 is key resistance and 120.23 20 DMA is immediate resistance on minor recoveries.

Below the 119 handle and recent lows of 119.61, a retest of 118.33/25 (March low) en route to the 116.15/115.85 2015 low and the recent low could be the next stops according to Karen Jones, chief analyst at Commerzbank.
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Source:: FX Street