23 Jul 2013
USD/JPY losing its footing after peaking Friday at 100.859
FXstreet.com (Barcelona) - The Yen’s bullish reaction to election results and the intensifying bearishness towards the US Dollar have combined to hammer the USD/JPY early this week.
Yen strength and Dollar weakness a toxic mixture for USD/JPY
Traders have been selling the USD/JPY hard ever since Friday’s peak at 100.859. The bearish action for the cross is a reaction to the Yen’s initial bullish reaction to the apparent mandate for “Abenomics” in Japan and to the continued bearishness towards to US Dollar that started with Ben Bernanke’s surprisingly dovish speech on 7/10. A light economic calendar Tuesday may allow for the recent trends to continue.
Technical outlook for USD/JPY
Technicians are universally bullish on the USD/JPY on an intermediate to long-term basis. However, Tim Thielen, CMT and author of The Sea Change Report, sees the cross moving down to 92.53 before the macro bull trend in the cross resumes. Shorter-term support for USD/JPY comes in at the 7/16 pivot low of 98.88 followed by the 7/11 intraday low of 98.23. Resistance for USD/JPY comes in at Friday’s intraday high at 100.859 and then the 7/8 intraday high at 101.525.
Yen strength and Dollar weakness a toxic mixture for USD/JPY
Traders have been selling the USD/JPY hard ever since Friday’s peak at 100.859. The bearish action for the cross is a reaction to the Yen’s initial bullish reaction to the apparent mandate for “Abenomics” in Japan and to the continued bearishness towards to US Dollar that started with Ben Bernanke’s surprisingly dovish speech on 7/10. A light economic calendar Tuesday may allow for the recent trends to continue.
Technical outlook for USD/JPY
Technicians are universally bullish on the USD/JPY on an intermediate to long-term basis. However, Tim Thielen, CMT and author of The Sea Change Report, sees the cross moving down to 92.53 before the macro bull trend in the cross resumes. Shorter-term support for USD/JPY comes in at the 7/16 pivot low of 98.88 followed by the 7/11 intraday low of 98.23. Resistance for USD/JPY comes in at Friday’s intraday high at 100.859 and then the 7/8 intraday high at 101.525.