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15 Jan 2015
USD/JPY rebounds from 1-Month lows
FXStreet (Mumbai) - USD/JPY rose steadily in the Asian morning, rebounding from fresh one month lows of 116.05 reached in the previous session.
Currently, the USD/JPY pair traded at 117.75, up 0.35% on the day, having previously posted day’s low at 117.43. The yen strengthened against the US dollar yesterday after Japanese Prime Minister Abe's cabinet approved a record USD 812 billion budget for the fiscal year starting on April 1, while cutting new borrowing for a third straight year in yet another effort to balance growth and fiscal reform.
However, the gains in the yen were short-lived as US dollar took charge today after Japan’s private-sector machinery orders, increased by 1.3% in November, missing market expectations of a 4.8% rise. Moreover, USD/JPY also rebounded on a short covering rally after the recent weakness seen in the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located at 117.92 (5-DMA) levels and above which it could extend gains 118.51 (10-DMA) levels. To the downside immediate support might be located at 117.22 (Nov 27 Low) levels, below that at 117 levels.
Currently, the USD/JPY pair traded at 117.75, up 0.35% on the day, having previously posted day’s low at 117.43. The yen strengthened against the US dollar yesterday after Japanese Prime Minister Abe's cabinet approved a record USD 812 billion budget for the fiscal year starting on April 1, while cutting new borrowing for a third straight year in yet another effort to balance growth and fiscal reform.
However, the gains in the yen were short-lived as US dollar took charge today after Japan’s private-sector machinery orders, increased by 1.3% in November, missing market expectations of a 4.8% rise. Moreover, USD/JPY also rebounded on a short covering rally after the recent weakness seen in the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located at 117.92 (5-DMA) levels and above which it could extend gains 118.51 (10-DMA) levels. To the downside immediate support might be located at 117.22 (Nov 27 Low) levels, below that at 117 levels.