FXStreet (Edinburgh) – The Japanese yen is depreciating across the board at the end of the week, taking USD/JPY to session peaks in the 120.15/20 area.
USD/JPY boosted by risk appetite
The dovish tone from the FOMC minutes on Thursday morphed into positive news for Asian equities today, adding further downside pressure to the Japanese currency.
Market participants continue to push back expectations for a Fed’s lift-off at some point later this year (traders are currently betting on Q1 2016), giving further wings to the riskier assets and undermining any bullish attempts in the yen.
USD/JPY levels to watch
As of writing the pair is gaining 0.16% at 120.12 and a breakout of 120.57 (monthly high Oct.5) would open the door to 121.10 (55-day sma) and finally 121.41 (200-day sma). On the downside, the immediate support aligns at 119.65 (Fibo 61.8% of 125.28-116.16) followed by 118.68 (low Oct.2) and then 116.16 (post-PBoC low Aug.24).
(Market News Provided by FXstreet)