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27 Aug 2013
USD/JPY gains momentum after solid US data
FXstreet.com (Athens) - Solid US data give the American dollar a soft boost; the USD/JPY goes up at 97.50
Solid beats on both Richmond Fed and Consumer confidence pushing the greenback higher
Both the US indices released in much better than expected figures. US Richmond Fed Manufacturing index announced at 14 from -11, versus 0 expected, while consumer confidence touched 81.5, prior revised up to 81.0 from 80.3. The positive signs from the US, delivered a smooth support on the greenback. Traders should be very carefully because according to Shaun Osborne, on behalf of TD securities research, ‘Previous experience suggests that regional tensions and conflicts can prompt some short-term volatility in commodity, equity and FX markets but that these moves are often temporary’.
Technical outlook on USD/JPY
At the time of writing, the pair is trading at 97.32 area, down 1.17%. While after the solid US data, the pair managed to move upwards almost 12 pips, it finally pared all the gains, trading now nearly its daily lows (97.24). The FXstreet.com Trend Index shows the pair to be strongly bearish. Daily pivot point support can be found at 97.00, 96.68, 96.50 and resistance at 98.94, 99.14 and 99.43, respectively
Solid beats on both Richmond Fed and Consumer confidence pushing the greenback higher
Both the US indices released in much better than expected figures. US Richmond Fed Manufacturing index announced at 14 from -11, versus 0 expected, while consumer confidence touched 81.5, prior revised up to 81.0 from 80.3. The positive signs from the US, delivered a smooth support on the greenback. Traders should be very carefully because according to Shaun Osborne, on behalf of TD securities research, ‘Previous experience suggests that regional tensions and conflicts can prompt some short-term volatility in commodity, equity and FX markets but that these moves are often temporary’.
Technical outlook on USD/JPY
At the time of writing, the pair is trading at 97.32 area, down 1.17%. While after the solid US data, the pair managed to move upwards almost 12 pips, it finally pared all the gains, trading now nearly its daily lows (97.24). The FXstreet.com Trend Index shows the pair to be strongly bearish. Daily pivot point support can be found at 97.00, 96.68, 96.50 and resistance at 98.94, 99.14 and 99.43, respectively