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Forex pairs in this Article » USD/JPY (Edinburgh) -The USD is now losing momentum, dragging the USD/JPY to the area of 99.50/45 after reaching the boundaries of 99.90, or 5-week peaks.

USD/JPY boosted by data

The ISM Manufacturing surprised investors on the upside, advancing to 55.7 in August vs. 54.0 expected, propelling at the same time the pair to multi-week highs around 99.90, although retracing the spike afterwards. In the opinion of G.Moore and S.Osborne, FX Trading Strategists at TD Securities,“USD/JPY has been capped under weak daily cloud resistance for much of August and resistance is reinforced by the daily trend line at 99.05/10 (USD bullish above here). Weakness below 96.50 support should trigger a run to the low 95s”.

USD/JPY key levels

The pair is now advancing 0.12% at 99.47 facing the next hurdle at 99.95 (high Aug.2) followed by 100.00 (psychological level) and finally 100.19 (76.4% of 101.54-95.81). On the downside, a break below 99.16 (low Sep.3) would expose 98.75 (cloud base) and then 98.27 (low Sep.2).
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