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USD/JPY Fell to 119.20, Yen Continues Extended Gains in Europe

Posted by Chris Advincula on Apr 14, 2015 10:32:00 AM

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Chart: WorldWideMarkets Alpha Trader

Dollar yen came under pressure from the 120.20 high in the prior Asian session as the Japanese yen made steady gains across the board following the hawkish comments yesterday from Koichi Hamada, the economic adviser to Japan's Prime Minister Shinzo Abe.

In a television interview on Monday, Hamada said that the yen's current level of around 120 per US dollar is very weak. Yen buying ensued and pushed the USDJPY rate from 120.10 to 119.60 (-50 pips) in the first half of the European session.

Euro-yen also fell from 127.00 to 126.10 as the euro was initially sold on a report from the Financial Times that Athens was preparing for a debt default if it did not reach a deal with its creditors by the end of this month. Greece denied the report, saying that negotiations and the process was moving swiftly.

Dollar yen rebounds to 120.10 on short covering as the NY session opened. However, the weaker than expected U.S. Retail Sales data pushed the dollar lower once again from 119.95 to 119.14. The Retail Sales rose +0.9% in March versus the median forecast of +1.1% compared to +0.5% in Feb. (12:30 GMT).

The soft US Retail Sales data gave the euro a push higher. The euro gained against both the dollar and the yen. Euro-yen rose from 126.50 to 127.64 (+114 pips), while the euro rallied against the lower dollar to 1.0690 from 1.0550 (+140 pips).

The 14-day moving average appears toppish at 119.90 and points down to 119.30. The next 14 DMA support lines are 118.80 and 117.60.


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Charts: WorldWideMarkets Alpha Trader

Topics: $USDJPY, forex trading, European Session, Fundamental Analysis, Japanese Yen, EUR/JPY. EUR/USD


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