FXStreet (Edinburgh) – The dollar’s daily bleeding seems to have found some decent support around the 119.00 handle vs. the Japanese yen, with USD/JPY now clinching the mid-119.00s.
USD/JPY down from 121.00
The pair has retreated nearly two big-figures since weekly peaks around 121.00 the figure posted on Thursday pre-FOMC, all in response to the unexpected dovish tone struck by the Committee after leaving the Fed Funds Rates unchanged.
On the Japanese side, the BoJ left no room for surprises after the publication of its minutes. It did emphasized however that ongoing jitters in China and the emerging markets could threaten the outlook if the domestic economy.
In the data space, CB’s Leading Indicator is due next in the US economy, with consensus expecting a monthly gain of 0.2%.
USD/JPY levels to watch
As of writing the pair is losing 0.55% at 119.35 and a breach of 119.04 (low Sep.18) would aim for 118.58 (low Sep.4) and then 118.45 (low Aug.25). On the other hand, the immediate resistance lines up at 120.43 (high Sep.18) followed by 120.99 (high Sep.17) and finally 121.33 (high Sep.10).
(Market News Provided by FXstreet)