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18 Oct 2013
USD/JPY succumbs to bears; can’t defend 98 front
FXstreet.com (Chicago) - USD/JPY extends bearish price movement giving in the 98 front after attempting consolidation above the previously mentioned front.
USD under pressure
The US dollar suffers from speculative actions ahead of Japanese data and BoJ governor Kuroda. Market participants weigh in risk after rumors that Fed’s tapering won’t happen until next summer.
USD/JPY Technical Levels
Failing to resist bearish pressure, the pair falls breaking another support and giving in the 98 zone. Touching 97.84 weekly lows, the pair oscillates between supports aligned at 97.83 (October 3rd highs), 97.47 (October 9th highs) ahead of 96.93 (October 3rd lows) and the resistances set at 98.34 (October 1st highs), 98.73 (October 15th highs) followed by 99.16 (September 24th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis on a neutral EMA20. Diverging trends indicate a potential reversal in formation with longest trend pointing down contrary to shorter trends pointing up. Jim Lnaglands from FXcharts explains “Usd/¥ gave up much of its recent ground, in line with most other currency pairs, and after very briefly touching 99.00 it is now back below 98.00 and near session lows, making for a bearish outside day. The 4 hour indicators are pointing towards further possible losses with 97.78 (50% pivot of 96.56/99.00) being the first support, below which the dollar would head towards 97.50 (61.8%) and then 97.13(76.4%).”
USD under pressure
The US dollar suffers from speculative actions ahead of Japanese data and BoJ governor Kuroda. Market participants weigh in risk after rumors that Fed’s tapering won’t happen until next summer.
USD/JPY Technical Levels
Failing to resist bearish pressure, the pair falls breaking another support and giving in the 98 zone. Touching 97.84 weekly lows, the pair oscillates between supports aligned at 97.83 (October 3rd highs), 97.47 (October 9th highs) ahead of 96.93 (October 3rd lows) and the resistances set at 98.34 (October 1st highs), 98.73 (October 15th highs) followed by 99.16 (September 24th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis on a neutral EMA20. Diverging trends indicate a potential reversal in formation with longest trend pointing down contrary to shorter trends pointing up. Jim Lnaglands from FXcharts explains “Usd/¥ gave up much of its recent ground, in line with most other currency pairs, and after very briefly touching 99.00 it is now back below 98.00 and near session lows, making for a bearish outside day. The 4 hour indicators are pointing towards further possible losses with 97.78 (50% pivot of 96.56/99.00) being the first support, below which the dollar would head towards 97.50 (61.8%) and then 97.13(76.4%).”