USD/JPY: Bulls fighting for control, around 120.50
FXStreet (Mumbai) – USD/JPY extends its overnight choppy–trend in the mid-Asian trades, now recovering from a dip to session lows; as markets continue to weigh Japan’s ratings downgrade and at the same time remain wary ahead of the Fed verdict due later today.
USD/JPY supported at 20-DMA
Currently, the USD/JPY pair trades flat at 120.50, having posted a day’s high at 120.67 and a day’s low at 120.35. The major erased losses and now trades modestly flat, with traders expected to remain on the side-lines and may refrain from making big bets ahead of the key Fed verdict.
Meanwhile, markets digest the latest Japan’s trade figures which keep the yen undermined, while the recent US CPI data continues to dent the sentiment around the greenback. Thus, keeping the pair largely balanced around 120.50 USD/JPY levels.
The trade gap expanded from JPY268.1 billion in July to JPY569.7 billion last month, according to new customs data on Thursday, coming in slightly weaker than the forecast deficit of JPY540 billion.
Looking ahead, the highly anticipated Fed’s rate decision and press conference is expected to spur higher volatility, as the era of record low interest rates might come to an end.
USD/JPY Technical levels to consider
To the upside, the next resistance is located 120.73 (Sept 16 High) levels and above which it could extend 120.84 USD/JPY (Sept 14 High). To the downside immediate support might be located at 120.08 (Sept 16 Low) below that at 119.83 USD/JPY (Sept 14 Low).
USD/JPY extends its overnight choppy–trend in the mid-Asian trades, now recovering from a dip to session lows; as markets continue to weigh Japan’s ratings downgrade and at the same time remain wary ahead of the Fed verdict due later today.
(Market News Provided by FXstreet)