23 Mar 2015
USD/JPY hits fresh highs at 120.15
FXStreet (Mumbai) - USD/JPY crawled back higher above 120 handle in the European morning, moving in a tight range with investors still confused by last week's FOMC statement, which caused abnormal volatility in fx markets.
USD/JPY eyes 5-DMA
Currently, USD/JPY trades higher by 0.10% at fresh session highs of 120.16 levels, bouncing-off session lows at 119.79 levels. USD/JPY regained 120 handle and inches towards fresh session highs largely on the back of a sharp rebound in the greenback against its major peers. The US dollar index which measures the relative strength of the greenback against a basket of six major currencies jumped to highs at 98.53, recording a 0.45% gain in the day.
The greenback regained lost ground across the board after Fed official Bullard’s comments that if Fed waits too long long before raising rates and that such a situation would warrant a more aggressive rate hike in the future.
Meanwhile, markets are now focusing on Tuesday's US CPI data, which might hint at what the Fed will do next as the central bank wants to be reasonably confident on inflation outlook before initiating the lift-off.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120.22s (5-DMA) levels and above which it could extend gains 120.50 levels. To the downside immediate support might be located at 119.66 (March 13 Low) levels, below that at 119.38 (50-DMA) levels.
USD/JPY eyes 5-DMA
Currently, USD/JPY trades higher by 0.10% at fresh session highs of 120.16 levels, bouncing-off session lows at 119.79 levels. USD/JPY regained 120 handle and inches towards fresh session highs largely on the back of a sharp rebound in the greenback against its major peers. The US dollar index which measures the relative strength of the greenback against a basket of six major currencies jumped to highs at 98.53, recording a 0.45% gain in the day.
The greenback regained lost ground across the board after Fed official Bullard’s comments that if Fed waits too long long before raising rates and that such a situation would warrant a more aggressive rate hike in the future.
Meanwhile, markets are now focusing on Tuesday's US CPI data, which might hint at what the Fed will do next as the central bank wants to be reasonably confident on inflation outlook before initiating the lift-off.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120.22s (5-DMA) levels and above which it could extend gains 120.50 levels. To the downside immediate support might be located at 119.66 (March 13 Low) levels, below that at 119.38 (50-DMA) levels.