8 Dec 2014
USD/JPY at multi-year high, eyes 122 levels
FXStreet (Mumbai) - The yen continues its slump against the US dollar, reaching multi-year lows, after Japan's Q3 GDP dropped worse than feared.
The decline in Japan's September-quarter GDP growth was revised up to 0.5% against an estimated 0.1% decline in growth in the third quarter.
At time of writing, USD/JPY trades at 121.53, after having clocked a high 121.83 post the Japanese GDP print release. The Japanese yen plummeted after broad dollar strength as US employments numbers showed that the US added jobs at the fastest rate.
Diverging monetary policy stance between the Federal Reserve and the Bank of Japan also added to the downside in the USD/JPY pair.
USD/JPY Technical Levels
To the upside, the next resistance is located at 122 levels and above which it could extend gains to 123 (July 2007) levels. To the downside immediate support might be located at 121.36 (20-day SMA), below that at 120.49 (50-day SMA) and 120.49 (50-day SMA).
The decline in Japan's September-quarter GDP growth was revised up to 0.5% against an estimated 0.1% decline in growth in the third quarter.
At time of writing, USD/JPY trades at 121.53, after having clocked a high 121.83 post the Japanese GDP print release. The Japanese yen plummeted after broad dollar strength as US employments numbers showed that the US added jobs at the fastest rate.
Diverging monetary policy stance between the Federal Reserve and the Bank of Japan also added to the downside in the USD/JPY pair.
USD/JPY Technical Levels
To the upside, the next resistance is located at 122 levels and above which it could extend gains to 123 (July 2007) levels. To the downside immediate support might be located at 121.36 (20-day SMA), below that at 120.49 (50-day SMA) and 120.49 (50-day SMA).