USD/JPY Fresh Bids Emerge Near 5-DMA, Re-takes 107.50

USD/JPY Fresh Bids Emerge Near 5-DMA, Re-takes 107.50

9 May 2016, 06:04
Roberto Jacobs

USD/JPY Fresh Bids Emerge Near 5-DMA, Re-takes 107.50

The bulls appear to have found some support near 107.20 region, where 5-DMA intersects, and recovered some ground over the last hour in a bid to reclaim 107.50 levels.

USD/JPY capped by hourly 200-SMA near 107.65

The dollar-yen pair remains well bid in the Asian session, now hovering within a tight range, with the upside capped by hourly 200-SMA and downside cushioned by 107 threshold. The major stalled its upmoves and drifted lower after sentiment soured following sharp losses seen in the Chinese and Australian equities, while the Japanese stocks traded with moderate gains. The Nikkei 225 index trades +0.60%, as USD/JPY regains poise and now trades around 107.40, up 0.21%% on the day.

Markets looked past downbeat US jobs data, auspicious Japanese cash earnings report and BOJ minutes, as focus remained on the sentiment around oil and stocks. In the day ahead, nothing of note for the major except for the US labour market conditions report, which will be published in the NA session.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 107.50 (May 4 high/ psychological levels). A break above the last, the major could test 108/108.20 (Apr 29 High). While to the downside, the immediate support is seen at 107/ 106.94 (round number/ daily S2) and below that at 106.43 (May 6 Low).


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