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20 May 2015
USD/JPY rejected at 121
FXStreet (Mumbai) - The US dollar rallied versus the Japanese yen for the third day in a row in the mid-Asian session, albeit USD/JPY failing to breach 121 barrier, as the US dollar continues to ride higher on the wave of the latest upbeat US housing data released on Tuesday. While the market seems to have shrugged of above estimates Japan’s GDP data as traders now await Fed’s minutes due later today.
USD/JPY supported at 120.60
Currently, the USD/JPY pair trades higher by 0.17% at 120.91, easing off fresh two month highs at 120.98 posted last hours. USD/JPY remains lifted as markets continue to cheer impressive US housing starts and building permits data released in the previous session which boosted the USD bulls.
The Department of Commerce's tally of housing starts soared to the highest level since late 2007. The figures offered some relief for the US dollar following a number of disappointing releases last week.
Moreover, better than forecasts Japanese GDP figures released this morning failed to lift the yen versus the US dollar, taking the pair higher towards 121 handle.
The Japanese economy expanded 0.6% in Q1 2015. GDP growth was recorded at 2.4% year-on-year last quarter, coming in much stronger than the market forecast of 1.6%, and beating the 1.5% growth seen in the December quarter.
Meanwhile, all eyes are set on Fed’s minutes release which may provide cues on US dollar moves. More hints on policy could also come from the two highest ranking officials, Vice-Chair Stanley Fisher who will speak on Thursday and Chair Janet Yellen who will speak on Friday.
USD/JPY Technical Levels
To the upside, the next resistance is located at 121 levels and above which it could extend gains 121.20 (March 20 High) levels. To the downside immediate support might be located at 120.60 (Today’s Low) below that at 120 levels.
USD/JPY supported at 120.60
Currently, the USD/JPY pair trades higher by 0.17% at 120.91, easing off fresh two month highs at 120.98 posted last hours. USD/JPY remains lifted as markets continue to cheer impressive US housing starts and building permits data released in the previous session which boosted the USD bulls.
The Department of Commerce's tally of housing starts soared to the highest level since late 2007. The figures offered some relief for the US dollar following a number of disappointing releases last week.
Moreover, better than forecasts Japanese GDP figures released this morning failed to lift the yen versus the US dollar, taking the pair higher towards 121 handle.
The Japanese economy expanded 0.6% in Q1 2015. GDP growth was recorded at 2.4% year-on-year last quarter, coming in much stronger than the market forecast of 1.6%, and beating the 1.5% growth seen in the December quarter.
Meanwhile, all eyes are set on Fed’s minutes release which may provide cues on US dollar moves. More hints on policy could also come from the two highest ranking officials, Vice-Chair Stanley Fisher who will speak on Thursday and Chair Janet Yellen who will speak on Friday.
USD/JPY Technical Levels
To the upside, the next resistance is located at 121 levels and above which it could extend gains 121.20 (March 20 High) levels. To the downside immediate support might be located at 120.60 (Today’s Low) below that at 120 levels.