USD/JPY moderates sell-off above 96.30

FXstreet.com (Barcelona) - The USD/JPY foreign exchange rate is last trading at 96.49, off recent session and key lows at 96.30, as it represents Wednesday's lows and a potential right shoulder for an inverted short term reversal pattern of head and shoulders, with the neck at current session highs shy of the 97 figure.

USD/JPY higher on short-covering

As Haruya Ida reported for DowJones, yesterday's NY session run up in USD/JPY was caused by “Short-covering, specially by US short-term players,” Ida said, adding: “Bidding interest remains sub-96.50 and trails down with stops not eyed till sub-95.80 and then 95.50.” The pair is down -2.48% for the week so far, although still +12.18% higher year to date. Nikkei index is last up a tiny +0.01% for the day, while a -5% for the week.

USD/JPY key technical levels

Immediate support to the downside for USD/JPY lies at recent session/Wednesday's lows 96.30, followed by yesterday's London session lows at 96.08, while closest resistance to the upside shows at Wednesday's London session lows 96.76, followed by recent session/yesterday's highs at 97.00.

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Session Recap: USD stalls the decline around 81 DXY; China CPI disappoints

The USD had an initial part of the last Asian trading session of the week well bid on the back of Yen weakness, with USD/JPY posting highs shy of the 97 handle, but coupled with some weak domestic data including worst tertiary industry activity for Japan in last 3 months, and hard Nikkei selling from session highs, it wasn't long till USD/JPY printed session lows at 96.30.
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