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22 Oct 2015
USD/JPY spikes 20 pips on US jobs
FXStreet (Guatemala) - USD/JPY has spiked 20 pips on the back of the initial jobless claims (IJC) for Oct 16 and continuing jobless claims (CJC) Oct 9. The data came in beating expectations with IJC 259k vs 265k expected and CJC 2.17m vs 2.188m expected.
The greenback has garnered some strength of the last week and a half, despite bets moving from a lift-off as soon as December and placed back to March 2016. But as data impresses such forecasts are pulled back into 2015. The recent CPI beating expectations hints towards an improved PCE that is the Fed's preferred measure of inflation, raising speculation that the conditions by Dec meeting could warrant lift off.
USD/JPY levels
Technically, it is going to take a shift of something to move the barriers, but we remain in familiar ranges still and we are some way off anything critical on the downside at this stage.
The support at 119.10/15 is key ahead of the 2012-2015 uptrend at 116.87. Key upside resistance through the 120.00 level would be at 120.89 and the 200 DMA while market struggles much through 120.20.
The greenback has garnered some strength of the last week and a half, despite bets moving from a lift-off as soon as December and placed back to March 2016. But as data impresses such forecasts are pulled back into 2015. The recent CPI beating expectations hints towards an improved PCE that is the Fed's preferred measure of inflation, raising speculation that the conditions by Dec meeting could warrant lift off.
USD/JPY levels
Technically, it is going to take a shift of something to move the barriers, but we remain in familiar ranges still and we are some way off anything critical on the downside at this stage.
The support at 119.10/15 is key ahead of the 2012-2015 uptrend at 116.87. Key upside resistance through the 120.00 level would be at 120.89 and the 200 DMA while market struggles much through 120.20.