6 Jan 2014
USD/JPY retreats as Nikkei 225 opens lower
FXstreet.com (Córdoba) – The USD/JPY started the week extending the rally from Friday's American session and rose to 104.95 hitting the strongest level since last Thursday but afterwards turned to the downside and dropped 30 pips in a few minutes, bottoming at 104.61.
The Nikkei 225, that was closed since December 30, opened sharply lower, losing more than 1% and pushed the Yen to the upside in the market. Currently the USD/JPY trades at 104.70, down 0.06% for the day.
Technical outlook for the USD/JPY
The 105.00, where the 100 SMA in the hours chart lies, is offering resistance according to Valeria Bednarik, Chief Analyst at FXstreet.com. “In the 4 hours chart technical readings bounce from oversold territory still below their midlines, but overall supporting some further advances for today”, says Bednarik.
The Nikkei 225, that was closed since December 30, opened sharply lower, losing more than 1% and pushed the Yen to the upside in the market. Currently the USD/JPY trades at 104.70, down 0.06% for the day.
Technical outlook for the USD/JPY
The 105.00, where the 100 SMA in the hours chart lies, is offering resistance according to Valeria Bednarik, Chief Analyst at FXstreet.com. “In the 4 hours chart technical readings bounce from oversold territory still below their midlines, but overall supporting some further advances for today”, says Bednarik.