30 Jun 2014
USD/JPY keeps finding bids off 101.30
FXStreet (Bali) - USD/JPY is trading a tad firmer at 101.42 after multiple rejections off 101.30 critical daily support.
It is important to highlight that trading in USD/JPY is developing below its 200 DMA first time since October 2013, and as long as yields in the US remain heavy and no further QE by the BoJ or Japan's GPIF asset re-allocation are announced, traders should expect recoveries in the pair to be limited.
Technically, according to Valeria Bednarik, Chief Aanlyst at FXStreet: "USD/JPY is poised to extend its decline eyeing a test of 100.70, this year low, and even further towards critical psychological level of 100.00. A break below this last will depend on US employment figures to be released on Thursday, as if American data results weak, the USD/JPY may even extend down to 98.90 risking all of the work achieved by macro policies over the last year."
It is important to highlight that trading in USD/JPY is developing below its 200 DMA first time since October 2013, and as long as yields in the US remain heavy and no further QE by the BoJ or Japan's GPIF asset re-allocation are announced, traders should expect recoveries in the pair to be limited.
Technically, according to Valeria Bednarik, Chief Aanlyst at FXStreet: "USD/JPY is poised to extend its decline eyeing a test of 100.70, this year low, and even further towards critical psychological level of 100.00. A break below this last will depend on US employment figures to be released on Thursday, as if American data results weak, the USD/JPY may even extend down to 98.90 risking all of the work achieved by macro policies over the last year."