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23 Jan 2015
USD/JPY testing 118.00
FXStreet (Edinburgh) - The greenback is deflating vs. the Japanese yen on Friday, driving USD/JPY back to sub-118.00 levels.
USD/JPY coming down from 118.80
Spot is suffering renewed JPY strength today, dragging spot from overnight peaks around the 118.80 area to current lows in the 117.90 neighbourhood. In the data space, the flash manufacturing PMI in Japan tracked by Nomura/JMMA slightly improved for the month of January while Markit’s manufacturing PMI and Existing Home Sales are due later in the US economy.
“We continue to see divergence between BoJ and Fed policy acting as a driver of USD/JPY upside. We expect the Fed to hike in June which should ensure that the cross stays supported for most of 2015”, commented analysts at Danske Bank.
USD/JPY important levels
The pair is now retreating 0.45% at 118.00 with the immediate support at 117.18 (low Jan.21) ahead of 116.93 (low Jan.19) and then 115.85 (2015 low Jan.14). On the other hand a breakout of 118.82 (high Jan.22) would open the door to 118.87 (high Jan.20) and finally 118.92 (61.8% of 120.82-115.85).
USD/JPY coming down from 118.80
Spot is suffering renewed JPY strength today, dragging spot from overnight peaks around the 118.80 area to current lows in the 117.90 neighbourhood. In the data space, the flash manufacturing PMI in Japan tracked by Nomura/JMMA slightly improved for the month of January while Markit’s manufacturing PMI and Existing Home Sales are due later in the US economy.
“We continue to see divergence between BoJ and Fed policy acting as a driver of USD/JPY upside. We expect the Fed to hike in June which should ensure that the cross stays supported for most of 2015”, commented analysts at Danske Bank.
USD/JPY important levels
The pair is now retreating 0.45% at 118.00 with the immediate support at 117.18 (low Jan.21) ahead of 116.93 (low Jan.19) and then 115.85 (2015 low Jan.14). On the other hand a breakout of 118.82 (high Jan.22) would open the door to 118.87 (high Jan.20) and finally 118.92 (61.8% of 120.82-115.85).