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Forex pairs in this Article » USD/JPY
FXstreet.com (Athens) – The USD/JPY is absolutely muted during the past hour ahead of US factory data release.

The USD/JPY had been heading higher during the midst European trading session, but the last hour is almost unchanged. Traders should not find out of the blue the trend shift of the cross, because at the time being there is no any fundamental trigger to move the cross. Apart from the US factory data release at 15:00 GMT hours, on Tuesday the ISM manufacturing data will be one of the first reads of economic sentiment during October’s shutdown. While markets expect a fall from 56.2 to 55.0, market participant should bear in mind that volatility risks are greater than usual for this release.

Technical Perspective on the USD/JPY

The cross is still sitting on the fence above the crucial support of the confluence of the 98.20-98.50 area, where the 10-daily EMA (98.20), 50-daily EMA (98.22) and the 100-daily EMA (98.50), are laying. The pair might need first of all to overcome the 98.65 resistance and then the 17th October high as of 99.01 to move higher near 100.00 area. Marc Chandler, Global Head Strategist of Currency Market Team, suggests that “…The technical tone is constructive, but within the context of the broad trading range conditions that have prevailed for five months now.. … However, even a move a bit higher, even a little of JPY100, wouldn't violate 5-month only trading range. A move above September high near JPY100.60, though would suggest something more important is taking place technically. The weekly technical readings warn of the upside risks to the dollar against the yen.”
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