FXStreet (Mumbai) – The USD/JPY pair extends its overnight slide into Asia, as the prevailing mixed sentiment across the financial markets continue to favour the Japanese currency.
USD/JPY on its way to hourly 100-SMA at 118.06
The USD/JPY pair trades -0.24% lower near fresh session lows of 118.13, extending further below 5-DMA at 118.45. The offered tone surrounding the USD/JPY pair keeping growing bigger as markets remain unnerved amid mixed session and mixed US dollar, while the upcoming Fed decision also keep the traders on the back foot, and thus, underpins the safe-haven bids for the yen.
Japan’s Nikkei rallies +2.33%, Australia’s ASX 200 loses -0.70%, while the Shanghai Composite index is down -0.40%. On the commodities space, oil trades mixed, with the US oil down -2% and the Brent rising over 1%.
Meanwhile, markets moved past yesterday’s upbeat US consumer confidence data and now await the new home sales numbers ahead of the much awaiting FOMC statement due later tonight.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 118.40/45 (1h 50-SMA/ 5-DMA). A break above the last, the major could test 118.77/79 (Jan 8 High/ daily R1). While to the downside, the immediate support is located at 117.84 (20-DMA) below which 117.69 (1h 200-SMA) would be tested.
(Market News Provided by FXstreet)