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20 Apr 2015
USD/JPY testing lows circa 118.60
FXStreet (Mumbai) - The US dollar snapped its side-trend from Asia and turned negative against the Japanese counterpart in the early European trades, with USD/JPY hovering near session lows, as the USD bulls fail to hold ground despite the latest upbeat US macro data.
USD/JPY: key support at 118.50
Currently, the USD/JPY pair trades -0.25% lower at 118.65 levels, hovering near fresh session lows reached at 118.60. The USD/JPY pair edged lower as Friday’s upbeat US consumer sentiment data failed to overshadow concerns that recent series of weak economic data, which continue to weigh on the major.
USD/JPY remains supported so long as it hold above 118.50 support as explained by Valeria Bednarik, Chief Analyst at FXStreet, "Technically, the 4 hours chart favors the downside, as the price extended further below its moving averages, whilst the technical indicators aim higher, but below their mid-lines."
"Shorter term, the 1 hour chart shows that the 100 SMA extended below the 200 SMA, with the shortest now offering dynamic resistance in the 119.30 region, whilst the technical indicators aim higher, but remain below their mid-lines. The pair needs to break below the 118.50 price zone to confirm additional declines towards the 116.80 price zone."
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.29 (100-DMA) levels and above which it could extend gains 119.76 (April 15 High) levels. To the downside immediate support might be located at 118.50 below that at 118.30 (March 26 Low) levels.
USD/JPY: key support at 118.50
Currently, the USD/JPY pair trades -0.25% lower at 118.65 levels, hovering near fresh session lows reached at 118.60. The USD/JPY pair edged lower as Friday’s upbeat US consumer sentiment data failed to overshadow concerns that recent series of weak economic data, which continue to weigh on the major.
USD/JPY remains supported so long as it hold above 118.50 support as explained by Valeria Bednarik, Chief Analyst at FXStreet, "Technically, the 4 hours chart favors the downside, as the price extended further below its moving averages, whilst the technical indicators aim higher, but below their mid-lines."
"Shorter term, the 1 hour chart shows that the 100 SMA extended below the 200 SMA, with the shortest now offering dynamic resistance in the 119.30 region, whilst the technical indicators aim higher, but remain below their mid-lines. The pair needs to break below the 118.50 price zone to confirm additional declines towards the 116.80 price zone."
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.29 (100-DMA) levels and above which it could extend gains 119.76 (April 15 High) levels. To the downside immediate support might be located at 118.50 below that at 118.30 (March 26 Low) levels.