FXStreet (Mumbai) – The USD/JPY is again pointing southwards as the safe haven demand for the Yen is on the rise due to the moderate weakness in the European equities.
Breaks below hourly 100-MA
The pair is trading slightly below its hourly 100-MA located at 118.15. The spot rebounded from the hourly 100-MA yesterday and also founds earlier today at the same. The latest decline is due to the 0.80% drop seen in the pan-European Euro Stoxx 50 index.
The European equities fell as oil prices declined following a bearish American Petroleum Institute report oil inventories. The spot remains at the mercy of the risk sentiment ahead of the FOMC rate decision due later today.
USD/JPY Technical Levels
The pair currently trades at 118.10. The immediate support is located at 117.68 (hourly 200-MA), under which the pair could drop to 117.20 (Jan 8 low). On the other hand, a break above 118.33 (hourly 50-MA) could see the pair test major resistance at 118.88 (Jan 22 high).
(Market News Provided by FXstreet)