18 Jul 2014
USD/JPY putting fear into non committed bulls
FXStreet (Guatemala) - USD/JPY is trading at 101.16, down -0.02% on the day, having posted a daily high at 101.23 and low at 101.12.
USD/JPY is dancing on the lows of this week yet falling shy of last weeks low so far at 101.06. A breach of that would be significant in a follow through onto the 100 handle and a close here at the end of the week would leave us wide open for further downside. That said, the FXStreet OB/OS Index is reflecting oversold hourly conditions with the risk aversion play in the markets currently taking a hold. However, as noted by Jane Foley
Senior Currency Strategist at Rabobank, the JPY has long since been associated with safe haven flows and these will from time to time offer direction. “That said, we would argue that the inability of USD/JPY to head higher this year is primarily a function of USD weakness. We anticipate that by the turn of the year a firmer tone should be creeping back into the USD and this should remove one hurdle to a firmer USD/JPY”.
USD/JPY hourly levels
With spot trading at 101.16, we can see next resistance ahead at 101.18 (Monthly Low), (Weekly Low), (Daily Open), 101.23 (Daily High) and 101.42 (Hourly 20 EMA). Support below can be found at 101.14 (Yesterday's Low), 101.12 (Daily Low), 101.00 (YTD Low), 100.81 (Weekly Classic S1) and 100.36 (Weekly Classic S2).
USD/JPY is dancing on the lows of this week yet falling shy of last weeks low so far at 101.06. A breach of that would be significant in a follow through onto the 100 handle and a close here at the end of the week would leave us wide open for further downside. That said, the FXStreet OB/OS Index is reflecting oversold hourly conditions with the risk aversion play in the markets currently taking a hold. However, as noted by Jane Foley
Senior Currency Strategist at Rabobank, the JPY has long since been associated with safe haven flows and these will from time to time offer direction. “That said, we would argue that the inability of USD/JPY to head higher this year is primarily a function of USD weakness. We anticipate that by the turn of the year a firmer tone should be creeping back into the USD and this should remove one hurdle to a firmer USD/JPY”.
USD/JPY hourly levels
With spot trading at 101.16, we can see next resistance ahead at 101.18 (Monthly Low), (Weekly Low), (Daily Open), 101.23 (Daily High) and 101.42 (Hourly 20 EMA). Support below can be found at 101.14 (Yesterday's Low), 101.12 (Daily Low), 101.00 (YTD Low), 100.81 (Weekly Classic S1) and 100.36 (Weekly Classic S2).