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USD/JPY testing highs around 102.40

FXStreet (Edinburgh) - The better tone of the greenback continues to push the USD/JPY higher on Thursday, currently hovering over 102.40/45.

USD/JPY boosted by US, Japan data

The massive trade deficit in the Japanese economy weakened the yen since the very beginning of the session while upbeat US manufacturing PMI tracked by Markit surprised investors to the upside, adding to the bullish mood around the pair. “While downside risks for USD/JPY have increased in the near-term, the pair continues to remain comfortably above support from its 200-day moving average at around 100.20. The release of the Japanese CPI report for January may weigh modestly upon the yen if inflation slows”, noted analysts at BTMU.

USD/JPY key levels

The pair is now up 0.12% at 102.38 with the next resistance located at 102.42 (high Feb.19) followed by 102.74 (high Feb.18) and then 102.84 (Kijun Sen line). On the downside, a break below 101.53 (daily cloud base) would open the door to 101.38 (low Feb.17) and finally 101.25 (low Feb.6).

EUR/USD recovery falters, back to 1.3700

The bounce of the EUR/USD lacked follow through and staled at the 1.3730 zone as the greenback resumed the rise after upbeat US manufacturing PMI and weak Eurozone consumer confidence.
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NZD/USD making a come back towards 0.8300

After a steep decline from over 0.8340 into the 0.8240’s, NZD/USD has managed a come back and is targeting the 0.83 handle with a temporary breach there in Europe.
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