8 Nov 2013
USD/JPY posts bearish engulfing candle Thursday – minimum downside target 0.9693
FXstreet.com (Barcelona) - The greenback – and thus the USD/JPY – rallied hard into the announcement of the US GDP but then immediately tumbled and continued to tumble into the mid-afternoon in the US.
USD/JPY traders will be watching the US data flow for more directional clues Friday
Traders took the USD/JPY for a wild ride Thursday first to the upside and then sharply lower before one last bounce into the close. Some of the action may be technical, or it may have been major posturing going into Friday’s US non-farm payrolls numbers.
Technical outlook for USD/JPY
Technicians say USD/JPY broke above horizontal line resistance at 98.47 early last week– potentially opening up more upside for the cross. Thursday’s bearish reversal put that thesis into serious doubt, however. Now, the next support comes in at last Friday’s low at 97.80 and is backed up by 97.60 in the short-term – but the eventual target for this move may be 0.9693. Resistance for USD/JPY comes in at Tuesday’s low at 98.21 and is backed up by Thursday’s peak at 99.40.
USD/JPY traders will be watching the US data flow for more directional clues Friday
Traders took the USD/JPY for a wild ride Thursday first to the upside and then sharply lower before one last bounce into the close. Some of the action may be technical, or it may have been major posturing going into Friday’s US non-farm payrolls numbers.
Technical outlook for USD/JPY
Technicians say USD/JPY broke above horizontal line resistance at 98.47 early last week– potentially opening up more upside for the cross. Thursday’s bearish reversal put that thesis into serious doubt, however. Now, the next support comes in at last Friday’s low at 97.80 and is backed up by 97.60 in the short-term – but the eventual target for this move may be 0.9693. Resistance for USD/JPY comes in at Tuesday’s low at 98.21 and is backed up by Thursday’s peak at 99.40.