USD/JPY: bears are tired, bulls are not ready yet

By FXstreet.com | July 08, 2014 AAA

FXStreet (Moscow) - USD/JPY climbed to the Asian high of 101.64 and stalled as USD bulls are not ready to push the currency much higher ahead of FOMC minutes.

Lost in the range

Actually, USD/JPY has been sitting in a narrow range limited by 101.20/35 and 102.70/80 since late January Now the pair is nearing the lower side of the above mentioned channel, which means that another bullish rebound might be just around the corner. From the fundamental point of view, the key catalysts of the week are FOMC minutes published later today, and BoJ rate decision scheduled for Thursday. A bit more bullish FED with a bit more dovish BOJ might trigger the upside movement, but they are unlikely to get the pair out of its long-term range. On the intraday basis watch for the support of 101.40 with strong demand on approach, and for the resistance of 101.90 that may cap the upside.

What are today’s key USD/JPY levels?

Today's central pivot point can be found at 101.66, with support below at 101.40, 101.23 and 100.97 with resistance above at 101.83, 102.09, and 102.26. Hourly Moving Averages are mixed, with the 200SMA at 101.70 and the daily 20EMA at 101.86. Hourly RSI is bearish at 49.

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