USD/JPY: Recovery capped at 124.70

FXStreet (Mumbai) - The US dollar fights hard to regain lost ground against its Japanese counterpart in the mid-European session, lifting USD/JPY from fresh session lows on the 124 handle. However, the major runs through fresh sellers on every attempt to the upside.

USD/JPY back below 125 levels

Currently, the USD/JPY pair trades -0.48% lower at 124.53, failing to surpass 124.70 immediate hurdle. The greenback continues to be relentlessly sold-off across the board as markets divert flows to riskier assets as PBOC induced risk aversion faded.

Moreover, traders resorted to profit-taking after the major reached fresh two-month highs beyond 125 levels ahead of Thursday economic data from both the continents which may major impact on the pair.

Looking ahead, a slew of Chinese macro releases is highly anticipated which will further set the tone across the FX space. While from the US, FOMC member Dudley’s speech and JOLTS job openings data will also be closely watched.

USD/JPY Technical Levels

To the upside, the next resistance is located 125.69 (June 8 High) levels and above which it could extend gains 125.86 (June 5 High) levels. To the downside immediate support might be located at 124.32 (Today’s Low) below that at 124 levels.

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