21 Jul 2015
USD/JPY hits fresh 6-week highs near 124.50
FXStreet (Mumbai) - After brief consolidation seen in Asia, the USD bulls jumped back in to the bids in the early European trades, driving USD/JPY to fresh multi-week highs beyond 124 handle. The major remains lifted as markets shrugged off BOJ rhetoric and favoured the US currency amid increased rate-hike expectations.
USD/JPY extends towards 125 barrier
Currently, the USD/JPY pair trades 0.11% higher at fresh monthly highs of 124.45, testing 124.50 – key resistance levels. USD/JPY advances in European morning on fresh bout of USD buying as demand for the greenback remained broadly supported by expectations for a US rate hike before the year end.
The US dollar index - a virtual measure of the greenback's power against its six major peers - stood at 98.25, near the highest levels since late April.
Monday’s comments by Fed official Bullard stating that he is expecting rate-hike in Sept FOMC further boosted the USD bulls, driving USD/JPY higher. While easing worries over Greece diminished yen’s appeal as a safe-haven which added to the gains in the major.
Markets look forward to Wednesday’s housing data from the US while Thursday JPY trade balance will be closely watched as today’s trading calendar remains dry for any cues on USD/JPY.
USD/JPY Technical Levels
To the upside, the next resistance is located 125 levels and above which it could extend gains 125.69 (June 8 High) levels. To the downside immediate support might be located at 124.29 (Today’s Low) below that at 123.96 (July 20 Low) levels.
USD/JPY extends towards 125 barrier
Currently, the USD/JPY pair trades 0.11% higher at fresh monthly highs of 124.45, testing 124.50 – key resistance levels. USD/JPY advances in European morning on fresh bout of USD buying as demand for the greenback remained broadly supported by expectations for a US rate hike before the year end.
The US dollar index - a virtual measure of the greenback's power against its six major peers - stood at 98.25, near the highest levels since late April.
Monday’s comments by Fed official Bullard stating that he is expecting rate-hike in Sept FOMC further boosted the USD bulls, driving USD/JPY higher. While easing worries over Greece diminished yen’s appeal as a safe-haven which added to the gains in the major.
Markets look forward to Wednesday’s housing data from the US while Thursday JPY trade balance will be closely watched as today’s trading calendar remains dry for any cues on USD/JPY.
USD/JPY Technical Levels
To the upside, the next resistance is located 125 levels and above which it could extend gains 125.69 (June 8 High) levels. To the downside immediate support might be located at 124.29 (Today’s Low) below that at 123.96 (July 20 Low) levels.