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15 May 2015
USD/JPY: Another week of consolidation?
FXStreet (Mumbai) - The USD/JPY pair appears poised to end in a consolidation mode for the eighth consecutive week as the Japanese yen remained stuck between rising Treasury yields and sell-off in the equity markets.
Yen struggles for direction
The pair has been restricted to a narrow range of 118.50-120.80 since last seven weeks, despite the US dollar getting hammered across the board. Moreover, it is the Japanese yen, which appears to be struggling for direction amid existence of opposing forces - rise in the long-end treasury yields and the sell-off in the equities.
It remains to be seen if the US industrial production figure due for release today manages to trigger a breakout from the consolidation.
USD/JPY Technical Levels
The pair now trades at 119.85. The immediate support is seen at 119.00, under which the pair could test 118.50 levels. On the flip side, a break above 120.48 could drive the pair higher to 120.80-121.00 levels.
Yen struggles for direction
The pair has been restricted to a narrow range of 118.50-120.80 since last seven weeks, despite the US dollar getting hammered across the board. Moreover, it is the Japanese yen, which appears to be struggling for direction amid existence of opposing forces - rise in the long-end treasury yields and the sell-off in the equities.
It remains to be seen if the US industrial production figure due for release today manages to trigger a breakout from the consolidation.
USD/JPY Technical Levels
The pair now trades at 119.85. The immediate support is seen at 119.00, under which the pair could test 118.50 levels. On the flip side, a break above 120.48 could drive the pair higher to 120.80-121.00 levels.