FXStreet (Edinburgh) – The Japanese yen is trading on a firmer footing vs. its American counterpart on Friday, with USD/JPY now extending its sideline pattern round 117.40.
USD/JPY weaker on risk-off re-emergence
Another negative close of the Chinese equities has triggered a fresh wave of risk aversion today, prompting investors to increase their demand for safe haven currencies and intensify the pair’s daily decline.
Ahead of the session, the US will be in the limelight today, with Retail Sales, Industrial Production and the Reuters/Michigan index all due later.
USD/JPY levels to watch
The pair is now retreating 0.58% at 117.36 facing the next support at 116.68 (low Jan.11) ahead of 116.46 (low Aug.24) and finally 115.82 (low Jan.16 2015). On the other hand, a breakout of 118.32 (38.2% Fibo of 123.60-116.68) would target 119.34 (20-day sma) en route to 120.67 (high Dec.30).
(Market News Provided by FXstreet)