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9 Jan 2015
USD/JPY drops on Fed’s Kocherlakota's Dovish Comments
FXStreet (Mumbai) - The dollar weakened against the US counterpart in the late Asian hours, halting its solid performance, after traders viewed comments from Federal Reserve of Minneapolis President Narayana Kocherlakota as dovish, as he indicated negative effects of an early interest rate hike on the country’s price pressures.
Currently, the USD/JPY pair trades at 119.35, down -0.26% on the day, after having posted intraday low at 119.17 levels an hour ago. The US dollar eased against the yen after Fed official subscribed to the view that the central bank should leave short-term borrowing costs near zero for a seventh year in a row, his main arguments for a delayed hike being falling US inflation and still-high unemployment.
Later today, the highly anticipated non-farm payroll report will be released in the US, which may provide fresh cues for the currency pair.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120 levels and above which it could extend gains 120.50 levels. To the downside immediate support might be located at 119 levels, below that at 118.66 levels.
Currently, the USD/JPY pair trades at 119.35, down -0.26% on the day, after having posted intraday low at 119.17 levels an hour ago. The US dollar eased against the yen after Fed official subscribed to the view that the central bank should leave short-term borrowing costs near zero for a seventh year in a row, his main arguments for a delayed hike being falling US inflation and still-high unemployment.
Later today, the highly anticipated non-farm payroll report will be released in the US, which may provide fresh cues for the currency pair.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120 levels and above which it could extend gains 120.50 levels. To the downside immediate support might be located at 119 levels, below that at 118.66 levels.