FXStreet (Mumbai) – The Japanese yen continues to trade higher against its American peer in a light European session, keeping USD/JPY near the lower end of today’s trading range.
USD/JPY stuck in 20-pips range
Currently, the USD/JPY pair trades -0.11% lower at 120.37, bouncing-off session lows struck at 120.33 some minutes ago. The major remains under pressure in the last day of the year as the yen extends losses from the previous session on the back of widespread cautiousness heading into 2016. While weaker global equities also help to boost the sentiment around the safe-haven in the JPY.
Moreover, the ongoing weakness in oil and lower global equities continue to favour the safe-haven bids for the yen while uncertainty surrounding Fed’s and BOJ’s monetary policy outlook for next year also adds to persisting irregular volatility witnessed in the final week of 2015.
Markets eagerly await the set of US macro updates for further cues on the pair while next week’s Nikkei manufacturing PMI, FOMC minutes and the crucial NFP report will remain in focus.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 120.60 (10-DMA). A break above the last, the major could test 121/121.04 (round number/ 20-DMA). While to the downside, the immediate support is located at 120.24 (Dec 29 Low) below which 120.02 (Dec 25 Low) would be tested.
(Market News Provided by FXstreet)