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19 May 2015
USD/JPY trades above 120.00
FXStreet (Mumbai) - The broad based demand for US dollars ensured the USD/JPY pair rose slowly and steadily to trade at 120.05 levels ahead of the US building permits and housing starts data.
Focus on US data
The strength in the pair is at the mercy of the housing data due for release today in the US. Last week, the USD was sold across the board after weaker-than-expected retail sales, industrial production and Michigan confidence index printed lower than expected. Thus, the housing data is likely to decide whether the pair extends gains above 120.00 or falls back below the same.
Meanwhile, the Treasury yields-USD/JPY correlation stayed weak today as the pair inched higher despite moderate losses in the long-end treasury yields.
USD/JPY Technical Levels
The immediate resistance is located at 120.48 (May 12 high), above which gains could be extended to 120.82 (Apr 13 high). On the flip side, a break below 119.64 (hourly 200-MA), could push the pair down to 119.42 (100-DMA).
Focus on US data
The strength in the pair is at the mercy of the housing data due for release today in the US. Last week, the USD was sold across the board after weaker-than-expected retail sales, industrial production and Michigan confidence index printed lower than expected. Thus, the housing data is likely to decide whether the pair extends gains above 120.00 or falls back below the same.
Meanwhile, the Treasury yields-USD/JPY correlation stayed weak today as the pair inched higher despite moderate losses in the long-end treasury yields.
USD/JPY Technical Levels
The immediate resistance is located at 120.48 (May 12 high), above which gains could be extended to 120.82 (Apr 13 high). On the flip side, a break below 119.64 (hourly 200-MA), could push the pair down to 119.42 (100-DMA).