1 Dec 2014
USD/JPY on its way to test 118.00?
FXStreet (Edinburgh) - After an ephemeral test of the 118.40 area, USD/JPY triggered a correction lower to the current 118.10 region, opening the door for a potential re-visit of earlier lows around 117.90.
USD/JPY looks to US Payrolls
It will be a light week in the Japanese data front, whereas the main catalysts and events will come from the USD side of the equation, with the US Non farm Payrolls due on Friday (232K expected) as the main attraction. The recent downgrade of Japan’s credit rating by agency Moody’s was largely bypassed by markets, having a very limited impact on the yen, which managed to recover ground after reaching multi-year lows vs. the US dollar at the end of the Asian session (119.14). According to analysts at BBH, “While officials seem more concerned about the pace than the level, there have been some officials (like Finance Minister Aso) and former officials (like Sakakibara) who are getting more concerned about the level”.
USD/JPY levels to consider
The pair is now losing 0.37% at 118.22 with the immediate support at 119.15 (2014 high Dec.1) ahead of 119.77 (high haug.9 2007) and finally 119.84 (high Aug.8 2007). On the upside, a break above 118.07 (low Dec.1) would expose 117.98 (Tenkan Sen) and then 117.89 (high Nov.27).
USD/JPY looks to US Payrolls
It will be a light week in the Japanese data front, whereas the main catalysts and events will come from the USD side of the equation, with the US Non farm Payrolls due on Friday (232K expected) as the main attraction. The recent downgrade of Japan’s credit rating by agency Moody’s was largely bypassed by markets, having a very limited impact on the yen, which managed to recover ground after reaching multi-year lows vs. the US dollar at the end of the Asian session (119.14). According to analysts at BBH, “While officials seem more concerned about the pace than the level, there have been some officials (like Finance Minister Aso) and former officials (like Sakakibara) who are getting more concerned about the level”.
USD/JPY levels to consider
The pair is now losing 0.37% at 118.22 with the immediate support at 119.15 (2014 high Dec.1) ahead of 119.77 (high haug.9 2007) and finally 119.84 (high Aug.8 2007). On the upside, a break above 118.07 (low Dec.1) would expose 117.98 (Tenkan Sen) and then 117.89 (high Nov.27).