USDJPY Technical Analysis – Heading towards 115.45
The yen rose for a fourth day against the dollar as Japanese stocks fell following a decline in oil to the lowest since 2009. The Japanese currency was stronger than all but one of the 16 major counterparts as the Nikkei 225 Stock Average declined for a second day. The euro traded 0.2 percent from a nine-year low amid speculation the European Central Bank will begin buying government bonds as early as next week to stave off deflation.
US Dollar is about to test the bottom familiar support of 115.45.
Nearby support is at 116.80.
Alternatively a reversal above 119.15 opens it for further test of the December
high at 120.82
#Support
117.90
116.80
115.45
#Resistance
119.15
120.90
121.90
There was good news out of Japan on Monday, as Current Account posted another strong reading in November. The account surplus improved to JPY 0.91 trillion, easily beating the estimate of 0.69 trillion. The next major release is set for Wednesday, with a look at Core Machinery Orders. The markets are expecting a strong gain of 4.8% for the November reading. USD/JPY was choppy in the Asian session, testing support at 117.94. The pair has been steady in the European and North American sessions.
