FXStreet (Mumbai) – The US dollar continues to get battered versus the Japanese currency in the mid-European trades, now keeping USD/JPY near fresh session lows struck below 119.50 – key levels.
USD/JPY fails to rise above hourly 20-SMA and drops further
Currently, the USD/JPY pair trades -0.18% lower at 119.52, hovering in the close vicinity of the fresh two-week lows. USD/JPY finally broke below the key support located at 119.50, which opens doors for further declines, as the US dollar remains pressured on the back of dropping bets of Fed rate hike this year, with the recent dismal China data adding to the negative sentiment on global economic prospects.
Moreover, safe-haven demand for the Japanese currency overshadowed the downbeat local news announced by the Japanese Cabinet office earlier on the day. The Japanese Government lowered its economic assessment for the first time since 2014, as published in its monthly report.
In the day ahead, the major will remain influenced by the key US retail sales and PPI numbers while the broader market sentiment will also direct further moves.
USD/JPY Technical levels to consider
To the upside, the next resistance is located at 119.83 (hourly 50-SMA) beyond which 120.07 (20-DMA) could be tested. Above the last, the pair could climb further towards 120.34/41 (daily R2 & 50-DMA). To the downside immediate support might be located at 119.50 (daily S1), below which 119.22-21 (Sept 29 & 24 Lows) could be exposed. A breach of the last, the pair could drop to 118.83 (Sept 8 Low) levels.
(Market News Provided by FXstreet)