USD/JPY – Yen Starts Week at 120

USD/JPY has started the first full week of 2015 with losses. Early in the North American session,  the pair trades just below the 120 line.  It’s a quiet start to the new trading week. In Japan Final Manufacturing PMI remained unchanged at 52.0 points. Monetary Base slipped to 34.3%. Over in the US, there is just one minor release on the schedule, Total Vehicle Sales. As well, FOMC Member John Williams will speak at an event in Boston. The US dollar has enjoyed broad gains against its major rivals, and the yen is no exception, as USD/JPY is trading close to the 120 line.

On Friday, US ISM Manufacturing PMI disappointed, falling to 55.5 points. This missed the forecast of 57.6 points and marked a 6-month low for the index. Still, market sentiment remains positive regarding the US economy and the US dollar continues to look sharp against its major rivals. We’ll get a look at the ISM Non-manufacturing PMI on Tuesday. The markets are expecting a softer reading in the December release.

USD/JPY for Monday, January 5, 2015

USD/JPY January 5 at 13:55 GMT

USD/JPY 119.88 H: 120.64 L: 119.86

USD/JPY Technical

• USD/JPY was uneventful in the Asian session. The pair has posted modest losses in the European session, putting strong pressure on support at 119.83.
• On the downside, 119.83 is under strong pressure. Will the pair break below this level in the North American session. 118.69 is stronger.
• 120.63 is an immediate resistance line.
• Current range: 119.83 to 120.83

Further levels in both directions:

• Below: 119.83, 118.69, 117.94, 116.69 and 115.56
• Above: 120.63, 121.39, 122.18 and 124.16

OANDA’s Open Positions Ratio

USD/JPY ratio is unchanged on Monday. This is not consistent with the pair’s movement, as the yen has posted slight gains. The ratio has a majority of long positions, indicative of trader bias towards the dollar posting gains.

USD/JPY Fundamentals

• 1:35 Japanese Final Manufacturing PMI. Actual 52.0 points.
• 13:00 US FOMC Member John Williams Speaks.
• All Day – US Total Vehicle Sales. Estimate 16.9M.
• 23:50 Japanese Monetary Base. Estimate 34.3%.

*Key releases are highlighted in bold

*All release times are GMT

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