Filed Under:
Forex pairs in this Article » USD/JPY
FXstreet.com (Moscow) - USD/JPY is recovering from the key support of 102.00: the currency pair managed to restore ground to the intraday highs at 102.40, where the upside dynamic waned as this is the Friday’s high and a good resistance area intensified by 1h 50 EMA.

JPY is too strong

Better Japanese data pushed the Yen higher across the board last week. Moreover, the JPY was the greatest beneficiary of EM currency crisis and one of the best performers. According to the latest COT report, the JPY short position narrowed due to the carry trades short-covering. Obviously, this means that the correction may be in store for us. The currency pair reached the first meaningful resistance at 102.40 early in Asia despite the negative dynamic of Nikkei, which is generally considered to be a bullish factor for the Japanese currency. Positive US ISM data may trigger further upside movement in the pair, but nothing can be said for sure in the current risk-aversive environment. As long as 102.00 support is intact the rangebound trading will prevail. The upside is likely to be limited by strong resistance of 103.00.

What are today’s key USD/JPY levels?

Today's central pivot point can be found at 102.35, with support below at 101.76, 101.35 and 100.75, with resistance above at 102.76, 103.36, and 103.77. Hourly Moving Averages are bearish, with the 200SMA at 103.10 and the daily 20EMA at 103.37. Hourly RSI is neutral at 46.
comments powered by Disqus