3 Sep 2013
USD/JPY stalls at 99.80 double-tops
FXstreet.com (Chicago) - USD/JPY exhausted bullish rally and was capped at 99.80 double tops (August 22nd highs) after President Obama’s declarations on potential attack and most recent Japanese announcement to increase sales taxes within days.
Tax hike soon in Japan? War with Syria?
Positive results in Japan may accelerate the government’s decision to increase sales taxes for a few months from April 2014 to October 2nd this year. Rumors are spreading across the world in regards to Abe’s decision after better-than-expected results have been announced within the past couple of weeks in Japan. Although there is little standing between Obama’s decisions to attack Syria, the yen weakened throughout the advancement of the American trading session. The most recent public announcement was made by US Secretary John Kerry stating that not acting would undermine the country’s credibility as the most powerful and military capable nation in the entire world. Obama said earlier today that he had “made a decision that America should take action, but I also believe that we will be much more effective, we will be stronger, if we take action together as one nation”.
USD/JPY Technical Levels
Technically speaking, the pair stopped bullish rally around 99.90 highs (double tops with August 1st) after running rumors indicating the pair could reach $100 level today. At the moment, the pair trades stalled at 99.56 between supports at 99.14 (August 22nd highs), 98.70 (August 15th highs) ahead of 98.24 (July 10th lows) and resistances at 99.95 (August 1st highs), 100.43 (July 25th highs) followed by 100.86 (July 18th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and trades above the EMA20.
Tax hike soon in Japan? War with Syria?
Positive results in Japan may accelerate the government’s decision to increase sales taxes for a few months from April 2014 to October 2nd this year. Rumors are spreading across the world in regards to Abe’s decision after better-than-expected results have been announced within the past couple of weeks in Japan. Although there is little standing between Obama’s decisions to attack Syria, the yen weakened throughout the advancement of the American trading session. The most recent public announcement was made by US Secretary John Kerry stating that not acting would undermine the country’s credibility as the most powerful and military capable nation in the entire world. Obama said earlier today that he had “made a decision that America should take action, but I also believe that we will be much more effective, we will be stronger, if we take action together as one nation”.
USD/JPY Technical Levels
Technically speaking, the pair stopped bullish rally around 99.90 highs (double tops with August 1st) after running rumors indicating the pair could reach $100 level today. At the moment, the pair trades stalled at 99.56 between supports at 99.14 (August 22nd highs), 98.70 (August 15th highs) ahead of 98.24 (July 10th lows) and resistances at 99.95 (August 1st highs), 100.43 (July 25th highs) followed by 100.86 (July 18th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and trades above the EMA20.