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30 Jul 2015
USD/JPY: Bulls on its way to conquer 124.50
FXStreet (Mumbai) - The bid tone around the USD/JPY pair keeps increasing in the Asian trades, driving the major towards key 124.50 resistance levels, on the back of broadly stronger greenback while diminishing appeal for safe-havens such as yen on stabilizing Chinese equities also added to the upbeat momentum in the pair.
USD/JPY strongly bid above 124 levels
Currently, the USD/JPY pair trades 0.20% higher at fresh weekly highs of 124.19, heading for a test of 124.50 levels. USD/JPY extends gains for the second straight session mainly driven by FOMC led gains in the US dollar after the Fed kept rates unchanged although talked up the US economic conditions mainly pointing towards strengthening labour market.
Moreover, the latest comments by Bank of Japan (BOJ) Ishida policymaker also added to the yen weakness, pushing USD/JPY higher. BOJ Ishida noted that the Japanese policymakers should watch out for accumulating risks from the prevailing easy policy while raising concerns over exports and production recovery during summer.
Traders now turn their attention towards US GDP figures due later today while a slew of crucial Japanese releases due tomorrow will also be closely watched for further momentum on the pair.
Trade the US GDP data with Bednarik, Pinkert and Carrillo - Live Coverage
USD/JPY Technical Levels
To the upside, the next resistance is located 124.50 (July 21 High) levels and above which it could extend gains 124.75 (June 9 High) levels. To the downside immediate support might be located at 123.95 (Today’s Low) below that at 123.73 (July 21 Low) levels.
USD/JPY strongly bid above 124 levels
Currently, the USD/JPY pair trades 0.20% higher at fresh weekly highs of 124.19, heading for a test of 124.50 levels. USD/JPY extends gains for the second straight session mainly driven by FOMC led gains in the US dollar after the Fed kept rates unchanged although talked up the US economic conditions mainly pointing towards strengthening labour market.
Moreover, the latest comments by Bank of Japan (BOJ) Ishida policymaker also added to the yen weakness, pushing USD/JPY higher. BOJ Ishida noted that the Japanese policymakers should watch out for accumulating risks from the prevailing easy policy while raising concerns over exports and production recovery during summer.
Traders now turn their attention towards US GDP figures due later today while a slew of crucial Japanese releases due tomorrow will also be closely watched for further momentum on the pair.
Trade the US GDP data with Bednarik, Pinkert and Carrillo - Live Coverage
USD/JPY Technical Levels
To the upside, the next resistance is located 124.50 (July 21 High) levels and above which it could extend gains 124.75 (June 9 High) levels. To the downside immediate support might be located at 123.95 (Today’s Low) below that at 123.73 (July 21 Low) levels.