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Forex pairs in this Article » USD/JPY
FXstreet.com (London) - USD/JPY has climbed from 99.49 since yesterday morning to reach 100.51 overnight.

USD/JPY is up 0.25% on the London open since the beginning of the Asian market shift, trading at 100.30/35 while the greenback is outperforming with its 2yr yield advantage, and despite an improving Japanese economy. Among the risks today are US markets returning from 4th July holidays and digesting the BoE and ECB news. Then, attention will be paid to the NFP’s that comes in the afternoon. The Feds forward guidance centers around the labour market developments at present and the market will be looking for a strong report to keep the expectation of first tapering of the Feds QE programme alive.

USD/JPY has been sitting just below the top of the 101.23 cloud, which the USD/JPY quote now rides. The previous uptrend now acts as resistance at 101.40. Karen Jones, analyst at Commerzbank, also notes the 13 count on the 240 minute chart. All 3 suggest to her that we could see failure here. In order for the chart pattern to come under pressure however, we will need to see a break back below the base of the cloud at 98.15. She said initial support is offered by the 20 day moving average at 99.27. “Below here will leave the market on the defensive and likely to slide back to 97.27/96.44/95.25 en route to the 93.75 recent low. Above the cloud will target the 103.74 May high.”
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