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Forex pairs in this Article » USD/JPY (Chicago) - USD/JPY JPY held on to bearish pressures pushing the price close below 97.00 zone at the closing of the American trading session. Ahead of Tokyo, bulls succeed at protecting the round number, with a bounce reaching 97.18 so far.

Undefined timing for Japanese tax hikes?

Despite rising concerns on Syrian conflict after civilian attack with chemical weapons and last night’s US Secretary of State’s remarks of potential US retaliation, the bulls resisted above 97.00 after market participants rushed to hedge risks, driving the equities markets to the grounds.
In Japan, rumors on tax hike delays continue circulating after special adviser to Prime Minister Shinzo Abe, Koichi Hamada, stated that “rising sales tax would have various strong impacts, which could hamper (the effects of) Abenomics in boosting the economy and beating deflation”. The current sales taxes are at 5% and the plan is a 3% increase in April 2014 and 5% increase in October 2015.
In Wall Street, the markets closed with losses with the Dow down 1.14%, the Nasdaq down 2.16% and the S&P500 down 1.59%. Earlier in the day Consumer Confidence results were released at 81.5 vs. previous 81.0 and estimates at 80.3. The Richmond Fed Manufacturing Index for August was 14 compared to a previous -11 last month.

USD/JPY Technical Levels

Technically speaking, the pair trades at 97.16 between supports at 96.88 (August 20th lows), 96.41 (August 5th lows) ahead of 95.88 (August 9th lows) and resistances at 97.32 (August 19th lows), 97.59 (August 14th lows), 97.96 (August 20th highs). The trend index reports the pair as slightly bearish on one-hour timeframe analysis with a price trading below the EMA20. Also, there are stops in good size noted at 96.90 according to bank sources.
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