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15 Dec 2014
Yen underpinned on Abe’s election victory
FXStreet (Mumbai) - The Japanese currency erased Abe-backed gains from early Asian morning and trades lower on softer Japanese manufacturing report.
Currently, USD/JPY trades lower at 118.58 levels, down -0.17% on the day, after having previously posted a day’s low of 117.96 levels in reaction to Prime Minister Shinzo Abe's sweeping election victory on Sunday. The Japanese yen quickly gave up Abe’s victory driven gains, as markets remain unconvinced over Abe’s economic policy reforms which includes ‘three arrows' strategy of monetary easing, fiscal stimulus and structural reforms.
Moreover, the yen lost ground versus US dollar after the Tankan Manufacturing Index, Japanese manufacturing activity gauge, eased from 13 in Q3 to 12 this quarter. The softer factory data renewed concerns over health of Japanese economy after it slipped into recession last quarter.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.22 (Dec 12 High) levels and above which it could extend gains to 119.92 (Dec 10 High) levels. To the downside immediate support might be located at 117.43 (Dec 11 Low), below that at 117 levels.
Currently, USD/JPY trades lower at 118.58 levels, down -0.17% on the day, after having previously posted a day’s low of 117.96 levels in reaction to Prime Minister Shinzo Abe's sweeping election victory on Sunday. The Japanese yen quickly gave up Abe’s victory driven gains, as markets remain unconvinced over Abe’s economic policy reforms which includes ‘three arrows' strategy of monetary easing, fiscal stimulus and structural reforms.
Moreover, the yen lost ground versus US dollar after the Tankan Manufacturing Index, Japanese manufacturing activity gauge, eased from 13 in Q3 to 12 this quarter. The softer factory data renewed concerns over health of Japanese economy after it slipped into recession last quarter.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.22 (Dec 12 High) levels and above which it could extend gains to 119.92 (Dec 10 High) levels. To the downside immediate support might be located at 117.43 (Dec 11 Low), below that at 117 levels.