Back
2 Dec 2014
USD/JPY still capped by 119.00
FXStreet (Edinburgh) - The 119.00 band still remains elusive for USD/JPY today, keeping the bid tone in the 118.80/90 band so far.
USD/JPY buoyed by solid USD
The upbeat sentiment around the US dollar continues to be the main support for the pair’s upside on Tuesday, recovering almost a big-figure since Monday’s lows in sub-118.00 levels. Ahead in the week, the main event will undoubtedly be November’s Payrolls in the US economy, with consensus expecting the economy to have created 232K jobs. In the meantime, mid-month elections in Japan will start concentrating investors’ attention, with current PM S.Abe looking to be re-elected and thus a continuation of the ‘Abenomics’. “Election uncertainty is likely to dampen enthusiasm for the Abenomics trade for now – but assuming no shocking loss of seats by the government, USD/JPY is set to remain well supported and should start to drift higher in Q1 next year”, assessed Derek Halpenny, Head of GMR at BTMU.
USD/JPY levels to consider
At the moment the pair is advancing 0.50% at 118.92 with the next resistance at 119.15 (2014 high Dec.1) followed by 119.77 (high Aug.9 2007) and then 119.84 (high Aug.8 2007). On the flip side, a breakdown of 118.23 (low Dec.2) would open the door to 118.20 (Tenkan Sen) and finally 117.86 (low Dec.1).
USD/JPY buoyed by solid USD
The upbeat sentiment around the US dollar continues to be the main support for the pair’s upside on Tuesday, recovering almost a big-figure since Monday’s lows in sub-118.00 levels. Ahead in the week, the main event will undoubtedly be November’s Payrolls in the US economy, with consensus expecting the economy to have created 232K jobs. In the meantime, mid-month elections in Japan will start concentrating investors’ attention, with current PM S.Abe looking to be re-elected and thus a continuation of the ‘Abenomics’. “Election uncertainty is likely to dampen enthusiasm for the Abenomics trade for now – but assuming no shocking loss of seats by the government, USD/JPY is set to remain well supported and should start to drift higher in Q1 next year”, assessed Derek Halpenny, Head of GMR at BTMU.
USD/JPY levels to consider
At the moment the pair is advancing 0.50% at 118.92 with the next resistance at 119.15 (2014 high Dec.1) followed by 119.77 (high Aug.9 2007) and then 119.84 (high Aug.8 2007). On the flip side, a breakdown of 118.23 (low Dec.2) would open the door to 118.20 (Tenkan Sen) and finally 117.86 (low Dec.1).