21 Aug 2013
USD/JPY tumbles on news of radiation problems with a Japanese reactor
FXstreet.com (Barcelona) - A headline came across the wires indicating an intensification of radiation problems in one of the tsunami-affected nuclear reactors in Japan. The news caused an immediate flow of funds out of the Nikkei and into the safe harbor of the Yen (forcing the USD/JPY lower).
USD/JPY bulls trying to hold their ground at 97.18 support
While the suddenness of the drop in USD/JPY was shocking, no technical damage will be done unless the cross closes a 10-minute bar out below 97.18 – the 20:30 GMT low from Tuesday.
For more info on the radiation news, click here.
Technical outlook for USD/JPY
The USD/JPY’s intermediate-term outlook is bearish according to technicians. They have the ultimate downside target at 92.53. Below 97.18, support comes into play at the 8/16 low of 97.05. Meanwhile, if 97.18 holds up as support, resistance for what may be the rest of the bounce (currently under way) comes in at 99.87.
USD/JPY bulls trying to hold their ground at 97.18 support
While the suddenness of the drop in USD/JPY was shocking, no technical damage will be done unless the cross closes a 10-minute bar out below 97.18 – the 20:30 GMT low from Tuesday.
For more info on the radiation news, click here.
Technical outlook for USD/JPY
The USD/JPY’s intermediate-term outlook is bearish according to technicians. They have the ultimate downside target at 92.53. Below 97.18, support comes into play at the 8/16 low of 97.05. Meanwhile, if 97.18 holds up as support, resistance for what may be the rest of the bounce (currently under way) comes in at 99.87.