9 Jul 2013
USD/JPY range bound trading
FXstreet.com (New York) - After what transpired as an uneven morning session, the USD/JPY has been relegated to a more range bound consolidation during US trading Tuesday.
Indeed, the USD/JPY has maintained its grip on the 101.00 level for the entirety of the day thus far, clinging to health gains (+0.20%) in these moments, whilst settling at 101.17.
Technical Bias
According to the Technical Analyst Team at ICN.com, “The USD/JPY is still trading in a narrow range within the ascending technical formation. Should the pair fail to break the ascending support of this formation and stabilize below 100.70 levels, it would move further to the upside in the near-term. As such, we should point out that breaching 101.60 is very important to trigger another bullish wave.”
In addition, “The USD/JPY has recently traded through its cloud yesterday, unable to clear its 78.6% retracement at 101.60 nor has it cleared the previous uptrend, which now acts as resistance at 101.74. This chart remains uninspiring on the topside and the large divergence of the 240 minute RSI does not bode well and we suspect the market may well fail here.” warns Karen Jones, an analyst at Commerzbank.
Technically speaking, the USD/JPY continues to find short-term resistance at its 50-day SMA (101.20). Ultimately, maintaining the 101.10 region (200-day SMA) is instrumental in allaying any immediate concerns of a pullback, specifically below the 101.00 level and below.
Upcoming events
The remainder of the US session today looks to be quite thin in terms of the datawires, though later tonight at 23:50 GMT, Japan is slated to reveal a minor dose of Corporate goods and Industrial figures. Ultimately, the marquee event this week will be the FOMC minutes tomorrow at 18:00 GMT. The recent fortitude of the US payrolls has once again called into question the lingering finality surrounding Fed-tapering, that many investors see as a virtual certainty in the near-future.
Indeed, the USD/JPY has maintained its grip on the 101.00 level for the entirety of the day thus far, clinging to health gains (+0.20%) in these moments, whilst settling at 101.17.
Technical Bias
According to the Technical Analyst Team at ICN.com, “The USD/JPY is still trading in a narrow range within the ascending technical formation. Should the pair fail to break the ascending support of this formation and stabilize below 100.70 levels, it would move further to the upside in the near-term. As such, we should point out that breaching 101.60 is very important to trigger another bullish wave.”
In addition, “The USD/JPY has recently traded through its cloud yesterday, unable to clear its 78.6% retracement at 101.60 nor has it cleared the previous uptrend, which now acts as resistance at 101.74. This chart remains uninspiring on the topside and the large divergence of the 240 minute RSI does not bode well and we suspect the market may well fail here.” warns Karen Jones, an analyst at Commerzbank.
Technically speaking, the USD/JPY continues to find short-term resistance at its 50-day SMA (101.20). Ultimately, maintaining the 101.10 region (200-day SMA) is instrumental in allaying any immediate concerns of a pullback, specifically below the 101.00 level and below.
Upcoming events
The remainder of the US session today looks to be quite thin in terms of the datawires, though later tonight at 23:50 GMT, Japan is slated to reveal a minor dose of Corporate goods and Industrial figures. Ultimately, the marquee event this week will be the FOMC minutes tomorrow at 18:00 GMT. The recent fortitude of the US payrolls has once again called into question the lingering finality surrounding Fed-tapering, that many investors see as a virtual certainty in the near-future.