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14 Aug 2013
USD/JPY refuses to surrender weekly gains, path clear to 100.00?
FXstreet.com (New York) - The USD/JPY foreign exchange rate managed to reside in a rather narrow consolidation during Asian trading thus far in the absence of economic data or market stimuli.
After a USD-induced rally yesterday, the USD/JPY is now residing at 98.23, virtually unchanged off its opening. Technically speaking, the USD/JPY ascension is weighted by resistances at 98.38 (July 31 high), onto 98.59 (August 6 high), and 99.11 (August 5 high). Conversely, the pair remains fortified by support at 98.08 (55-day MA), ahead of 97.71 (August 1 low), and 97.60 (July 31 low).
USD/JPY strategic bias
According to Jim Langlands at FX Charts, “The USD/JPY has drawn support from the reports that Japan might cut its corporate tax rate as an offset to raising the consumption tax and it currently looks capable of further gains, rising, so far, to the 61.8% resistance of the decline from 99.93/95.80 at 98.37. Above today’s high would suggest further gains towards 98.50, possibly to 99.00 and beyond there to 100. While the 4-hour charts remain positive, the 1-hour charts are overbought and look as though they are topping out, so at current levels, a neutral bias is preferred.”
After a USD-induced rally yesterday, the USD/JPY is now residing at 98.23, virtually unchanged off its opening. Technically speaking, the USD/JPY ascension is weighted by resistances at 98.38 (July 31 high), onto 98.59 (August 6 high), and 99.11 (August 5 high). Conversely, the pair remains fortified by support at 98.08 (55-day MA), ahead of 97.71 (August 1 low), and 97.60 (July 31 low).
USD/JPY strategic bias
According to Jim Langlands at FX Charts, “The USD/JPY has drawn support from the reports that Japan might cut its corporate tax rate as an offset to raising the consumption tax and it currently looks capable of further gains, rising, so far, to the 61.8% resistance of the decline from 99.93/95.80 at 98.37. Above today’s high would suggest further gains towards 98.50, possibly to 99.00 and beyond there to 100. While the 4-hour charts remain positive, the 1-hour charts are overbought and look as though they are topping out, so at current levels, a neutral bias is preferred.”