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18 May 2015
USD/JPY off-highs near 119.65
FXStreet (Mumbai) - The US dollar advanced versus the Japanese yen in the mid-Asian session, with USD/JPY rallying towards 120 handle, largely on the back of a short-covering rally after the recent weakness supported by Friday’s discouraging US macro numbers. While markets also shrugged off better than expectations Japanese core machinery orders released earlier today.
USD/JPY rises from 119.34
Currently, the USD/JPY pair trades higher by 0.35% at 119.65, having posted fresh session highs at 119.76 in last hours. USD/JPY rebounded sharply from 119.19 lows reached on Friday and remained heavily bid this session mainly driven by a bout of profit taking by the traders on their USD shorts after the downbeat US industrial production and consumer sentiment data dragged the greenback lower across the board.
The dollar index, a gauge of greenback’s strength versus its major competitors rebounded and trades 0.18% higher near session highs at 93.46.
More so, markets completely ignored upbeat Japan’s core machine orders, thereby failing to lift the Japanese yen. Machinery orders, excluding volatile items such as ships and utility items, rose 2.9% m/m in March, after sliding a revised 1.4% in February and declining 1.7% in January. Markets had picked a 1.7% rise in machinery orders in March.
On the macroeconomic front, there is nothing much to report in the day as the EUR calendar is absolutely dry while NAHB Housing Market Index is the only indicator to be reported in the American session.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.76 (Today’s High) levels and above which it could extend gains 120 levels. To the downside immediate support might be located at119.27 (Today’s Low) below that at 119 levels.
USD/JPY rises from 119.34
Currently, the USD/JPY pair trades higher by 0.35% at 119.65, having posted fresh session highs at 119.76 in last hours. USD/JPY rebounded sharply from 119.19 lows reached on Friday and remained heavily bid this session mainly driven by a bout of profit taking by the traders on their USD shorts after the downbeat US industrial production and consumer sentiment data dragged the greenback lower across the board.
The dollar index, a gauge of greenback’s strength versus its major competitors rebounded and trades 0.18% higher near session highs at 93.46.
More so, markets completely ignored upbeat Japan’s core machine orders, thereby failing to lift the Japanese yen. Machinery orders, excluding volatile items such as ships and utility items, rose 2.9% m/m in March, after sliding a revised 1.4% in February and declining 1.7% in January. Markets had picked a 1.7% rise in machinery orders in March.
On the macroeconomic front, there is nothing much to report in the day as the EUR calendar is absolutely dry while NAHB Housing Market Index is the only indicator to be reported in the American session.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.76 (Today’s High) levels and above which it could extend gains 120 levels. To the downside immediate support might be located at119.27 (Today’s Low) below that at 119 levels.