20 Aug 2013
USD/JPY down 0.51% at 97.04 as risk aversion prevails across the board
FXstreet.com (Athens)- JPY has been boosted recently, as ahead of significant data over the coming days, the need for ‘safe haven’ assets returned.
Pre-FOMC volatility has already picked up - and its hurting the US Dollar. The dismal release of the Chicago Fed National Activity Index was the least factor that pushed USD/JPY lower. The ‘risk-off’ environment, ahead of Fed events, increased volatility and hurt the American dollar against its leading majors across the board, including the Japanese currency. This week is notable in particular given two important Federal Reserve events that should give greater insight as to which way the central bank is leaning towards tapering QE3 in September. Even though the pair staged a brief bounce later on in the overnight session after BoJ Governor Kuroda said that the BoJ's stance is to do whatever it takes to beat deflation, the momentum was not sustained and the downward trend soon resumed.
USD/JPY Key levels
USD/JPY is currently trading at 97.16, having moved off its daily low at 96.92. The FXstreet.com Trend Index shows the pair to be strongly bearish. Daily pivot point support can be found at 97.00, 96.82, 96.57 and resistance at 98.09, 98.17 and 98.33, respectively.
Pre-FOMC volatility has already picked up - and its hurting the US Dollar. The dismal release of the Chicago Fed National Activity Index was the least factor that pushed USD/JPY lower. The ‘risk-off’ environment, ahead of Fed events, increased volatility and hurt the American dollar against its leading majors across the board, including the Japanese currency. This week is notable in particular given two important Federal Reserve events that should give greater insight as to which way the central bank is leaning towards tapering QE3 in September. Even though the pair staged a brief bounce later on in the overnight session after BoJ Governor Kuroda said that the BoJ's stance is to do whatever it takes to beat deflation, the momentum was not sustained and the downward trend soon resumed.
USD/JPY Key levels
USD/JPY is currently trading at 97.16, having moved off its daily low at 96.92. The FXstreet.com Trend Index shows the pair to be strongly bearish. Daily pivot point support can be found at 97.00, 96.82, 96.57 and resistance at 98.09, 98.17 and 98.33, respectively.