Back
9 Dec 2014
USD/JPY bounces at 118.00 after performing a 19% correction
FXStreet (San Francisco) - After falling 220 pips from 120.10 in the American morning, the USD/JPY is testing the 118.00 level. The pair is extending its decline from Yesterday's high of 121.80 which means a 19% correction of 19% since the 2100-pip rally started in July 2014.
However, the pair is taking the 118.00 as support and it is bouncing back to price above 118.50. Currently, USD/JPY is trading at 118.82, down 1.52% on the day, having posted a daily high at 121.02 and low at 117.94.
The hourly FXStreet OB/OS Index is showing oversold conditions, alongside the FXStreet Trend Index which is slightly bearish.
USD/JPY sentiment
The Us dollar is trading in a corrective phase against its major competitors. Investors are closing positions before year-end so that rebalancing is taking place shortly earlier than previous months.
According to Ryan Littlestone from ForexLive, "118.55/65 was resistance on the first move to 118.19 and if it holds then we’re likely to head lower again, but possibly at a more sedate pace."
If the pair extends bounce, it will find resistances at 119.00, 119.60 and 120.10. To the downside, supports are at 118.00, 117.80 and 117.60.
However, the pair is taking the 118.00 as support and it is bouncing back to price above 118.50. Currently, USD/JPY is trading at 118.82, down 1.52% on the day, having posted a daily high at 121.02 and low at 117.94.
The hourly FXStreet OB/OS Index is showing oversold conditions, alongside the FXStreet Trend Index which is slightly bearish.
USD/JPY sentiment
The Us dollar is trading in a corrective phase against its major competitors. Investors are closing positions before year-end so that rebalancing is taking place shortly earlier than previous months.
According to Ryan Littlestone from ForexLive, "118.55/65 was resistance on the first move to 118.19 and if it holds then we’re likely to head lower again, but possibly at a more sedate pace."
If the pair extends bounce, it will find resistances at 119.00, 119.60 and 120.10. To the downside, supports are at 118.00, 117.80 and 117.60.