FXStreet (Córdoba) – The yen has continued to strengthen versus the US dollar, dragging USD/JPY to 4-day lows sub-123.00 at the beginning of the New York session.
The yen was underpinned by the risk off tone and a stronger-than-expected estimate of Q3 Japanese GDP, with USD/JPY turning lower after two days of gains and hitting a low of 122.70 in recent dealings. At time of writing, the pair is trading at 122.85, recording a 0.41% loss on the day.
From a wider perspective however, USD/JPY has been going through a consolidation phase since mid November within a range of 122.20-123.75, unable to set a longer-term direction. In the absence of first-tier data, main focus remains on Federal Reserve meeting next week and the greenback remains favored amid prospects the bank will raise rates.
USD/JPY technical levels
As for technical levels, next supports could be faced at 122.46 (Dec 7 low), 122.20 (Nov 16 low), 121.71 (100-day SMA) and 121.55 (200-day SMA). On the flip side, resistances line up at 123.46 (Dec 7 high), 123.74 (Nov 18 high), 124.15 (Aug 20 high) and 124.45 (Aug 19 high).
(Market News Provided by FXstreet)