24 Sep 2013
USD/JPY upwards as the “risk-on” party fades out
FXstreet.com (Athens)- The ">USD/JPY is trading the upper level since the early opening of the Asian trading session, as investors are not yet willing to force larger USD weakness.
The American dollar is down but in no way “out”; USD/JPY up ahead of US data
The USD/JPY managed to gather uptrend momentum and moved above the crucial 99.00 area, after having being plunged last week on FOMC decision. While traders yesterday bought the Japanese currency amidst a risk-aversion environment, the greenback decline was generally tepid. Elaborating on, traders should have in mind that the American dollar while being oversold during the last week, still didn’t break crucial supports. Thus, the greenback and obviously the pair have a great uptrend potential. On Monday, we had Lockhart and Dudley talk in a super dovish stance emphasizing the need to focus on lifting growth, with Dudley arguing that the Fed needed to “forcefully” push against headwinds, whilst today Pianalto and George speak although Pianalto is speaking on payment systems and George is making opening remarks at the same conference. Last but not least, traders should focus on the fact that the initial party of buying risk assets since the Fed’s decision not to start tapering asset purchases, seems to have faltered.
Technical Outlook and Strategic Bias on USD/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests that “as long as the USD/JPY is sidelined in a converging range, we maintain our neutral to positive bias above the 97.52 support line. The market has held its cloud support at 97.64 and should remained under pinned here.
Our initial upside target is the 100.62 September high then 101.54/60 July high and the Fibonacci retracement, with a long term Fibonacci retracement offering a 105.48 resistance point above here.
Below 97.52 we would revert to neutral as the risk will increase of further slippage to the 200 day ma at 95.97.”
The American dollar is down but in no way “out”; USD/JPY up ahead of US data
The USD/JPY managed to gather uptrend momentum and moved above the crucial 99.00 area, after having being plunged last week on FOMC decision. While traders yesterday bought the Japanese currency amidst a risk-aversion environment, the greenback decline was generally tepid. Elaborating on, traders should have in mind that the American dollar while being oversold during the last week, still didn’t break crucial supports. Thus, the greenback and obviously the pair have a great uptrend potential. On Monday, we had Lockhart and Dudley talk in a super dovish stance emphasizing the need to focus on lifting growth, with Dudley arguing that the Fed needed to “forcefully” push against headwinds, whilst today Pianalto and George speak although Pianalto is speaking on payment systems and George is making opening remarks at the same conference. Last but not least, traders should focus on the fact that the initial party of buying risk assets since the Fed’s decision not to start tapering asset purchases, seems to have faltered.
Technical Outlook and Strategic Bias on USD/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests that “as long as the USD/JPY is sidelined in a converging range, we maintain our neutral to positive bias above the 97.52 support line. The market has held its cloud support at 97.64 and should remained under pinned here.
Our initial upside target is the 100.62 September high then 101.54/60 July high and the Fibonacci retracement, with a long term Fibonacci retracement offering a 105.48 resistance point above here.
Below 97.52 we would revert to neutral as the risk will increase of further slippage to the 200 day ma at 95.97.”