28 Apr 2015
USD/JPY supported at 119.00
FXStreet (Mumbai) - The US dollar trades in a flat-lining versus its Japanese counterpart in the mid-Asian trades, keeping USD/JPY well above 119 handle, as traders continue to digest dismal Japanese retail sales numbers which tumbled at the fastest pace on record in March.
USD/JPY capped by 119.22
Currently, the USD/JPY pair trades modestly flat at 119.10, having posted day’s highs at 119.20 and day’s low at 119.03. The yen dropped to fresh session lows versus the USD after Japanese retail sales showed a fall for the third consecutive month underscoring concerns in a deflation-gripped economy.
Retail sales plunged 9.7% y/y in March, according to the Ministry of Economy, Trade, and Industry (METI), coming in worse than the 7.4% decline in sales predicted by markets.
Meanwhile, the pair is seen consolidating previous losses after the US dollar weakened across the board following downbeat US services PMI reading which added to the recent series of weak US fundamentals.
Moreover, the pair remains supported as the shorter duration yield on the treasuries has rebounded sharply and trades at 0.543%, recording a 3.47% gain on the day, boosting the USD bulls ahead of Wednesday’s FOMC.
Meanwhile, markets now turn their focus towards US consumer confidence numbers due later in the day and Wednesday’s FOMC statement for further momentum on the major.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.44 (April 27 High) levels and above which it could extend gains 119.67 (April 24 High) levels. To the downside immediate support might be located at 118.75 (April 27 Low) below that at 118.51 (April 20 Low) levels.
USD/JPY capped by 119.22
Currently, the USD/JPY pair trades modestly flat at 119.10, having posted day’s highs at 119.20 and day’s low at 119.03. The yen dropped to fresh session lows versus the USD after Japanese retail sales showed a fall for the third consecutive month underscoring concerns in a deflation-gripped economy.
Retail sales plunged 9.7% y/y in March, according to the Ministry of Economy, Trade, and Industry (METI), coming in worse than the 7.4% decline in sales predicted by markets.
Meanwhile, the pair is seen consolidating previous losses after the US dollar weakened across the board following downbeat US services PMI reading which added to the recent series of weak US fundamentals.
Moreover, the pair remains supported as the shorter duration yield on the treasuries has rebounded sharply and trades at 0.543%, recording a 3.47% gain on the day, boosting the USD bulls ahead of Wednesday’s FOMC.
Meanwhile, markets now turn their focus towards US consumer confidence numbers due later in the day and Wednesday’s FOMC statement for further momentum on the major.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.44 (April 27 High) levels and above which it could extend gains 119.67 (April 24 High) levels. To the downside immediate support might be located at 118.75 (April 27 Low) below that at 118.51 (April 20 Low) levels.