FXStreet (Mumbai) – The risk-on sentiment has been extended to European markets, pushing the Euro Stoxx 50 futures higher by 2% and USD/JPY to a fresh session high of 120.56.
Yen under pressure
The safe haven Yen suffered on account of a more than 7% gains in the Japanese equity index Nikkei. The Asian markets rallied, although no clear cut catalyst was seen for the up move. On similar lines, the European futures spiked, adding further to the bearish pressure on the Yen.
The spot now trades around 120.50, with investors mainly focused on the activity in the equity markets. The market stands divided on Fed rate hike expectations and hence at the moment, little attention is being paid to the movement in the treasury yields.
USD/JPY Technical Levels
The immediate resistance is located at 120.70 (Sep 2nd high), above which gains could be extended to 121.00 levels. On the other side, support is seen at 120.13 (hourly 200-MA) and 119.63 (hourly 100-MA).
(Market News Provided by FXstreet)