24 Jan 2014
USD/JPY stabilizing around 102.40
FXstreet.com (Edinburgh) - The Japanese yen is now attempting a consolidation pattern vs. the greenback towards the end of the NA session on Friday, taking the USD/JPY to the area of 102.40/35.
USD/JPY bolstered by risk-off sentiment
Increasing risk aversion in the second half of the week sparked a steep correction lower, with spot nose-diving from the boundaries of 105.00 on Wednesday to as low as the critical 102.00 level during the European morning. According to strategists at UBS, “One concern is that the MACD trending indicator is already breaking below its zero line to reflect a potential bearish trend, although this must be confirmed on a closing basis at the same time as the 102.78 support gives way. A close below 102.78 would be a further bearish development, triggering a more extended decline|.
USD/JPY levels to watch
At the moment the pair is down 0.84% at 102.31 with the immediate support at 102.56 (low Dec.18) ahead of 102.50 (low Dec.17). On the flip side, a breakout of 103.97 (low Jan.22) would open the door to 104.15 (MA200h) and finally 104.55 (MA21d),
USD/JPY bolstered by risk-off sentiment
Increasing risk aversion in the second half of the week sparked a steep correction lower, with spot nose-diving from the boundaries of 105.00 on Wednesday to as low as the critical 102.00 level during the European morning. According to strategists at UBS, “One concern is that the MACD trending indicator is already breaking below its zero line to reflect a potential bearish trend, although this must be confirmed on a closing basis at the same time as the 102.78 support gives way. A close below 102.78 would be a further bearish development, triggering a more extended decline|.
USD/JPY levels to watch
At the moment the pair is down 0.84% at 102.31 with the immediate support at 102.56 (low Dec.18) ahead of 102.50 (low Dec.17). On the flip side, a breakout of 103.97 (low Jan.22) would open the door to 104.15 (MA200h) and finally 104.55 (MA21d),