11 Nov 2013
USD/JPY capped by 99.30
FXstreet.com (Edinburgh) -The USD rally is losing momentum on Monday, although the USD/JPY is showing some sort of resilience around today’s tops at 99.25/30.
USD/JPY extends the weekly advance
The pair is now advancing for the third consecutive week, taking out October highs and with September tops around 100.60 now on sight. The pair found extra oxygen in the stronger-than-expected US Payrolls during October, growing to 204K vs. 125K estimated. In the Japanese data front, a wider trade deficit continues to add selling pressure to the Japanese yen. Analysts at TD Securities argued “After having tested major support a number of times through October and November, it is not obvious that the market wants to take USD/JPY that much lower at present. The triangular shape of the broader consolidation is a natural bull continuation pattern (implies great risk of an upside break). For the moment, we look for more sideways range trading”.
USD/JPY key levels
The pair is now advancing 0.08% at 99.24 with the immediate resistance at 99.41 (high Nov.7) ahead of 99.67 (high Sep.20) and then 99.98 (high Sep.13). On the downside, a break below 98.51 (Tenkan Sen line) would open the door to 97.97 (low Nov.8) and then 97.78 (MA200d).
USD/JPY extends the weekly advance
The pair is now advancing for the third consecutive week, taking out October highs and with September tops around 100.60 now on sight. The pair found extra oxygen in the stronger-than-expected US Payrolls during October, growing to 204K vs. 125K estimated. In the Japanese data front, a wider trade deficit continues to add selling pressure to the Japanese yen. Analysts at TD Securities argued “After having tested major support a number of times through October and November, it is not obvious that the market wants to take USD/JPY that much lower at present. The triangular shape of the broader consolidation is a natural bull continuation pattern (implies great risk of an upside break). For the moment, we look for more sideways range trading”.
USD/JPY key levels
The pair is now advancing 0.08% at 99.24 with the immediate resistance at 99.41 (high Nov.7) ahead of 99.67 (high Sep.20) and then 99.98 (high Sep.13). On the downside, a break below 98.51 (Tenkan Sen line) would open the door to 97.97 (low Nov.8) and then 97.78 (MA200d).