USD/JPY bears woke up early, 102.40 support in sight

By FXstreet.com | August 04, 2014 AAA

FXStreet (Moscow) - USD/JPY resumed the downside after a slow start on Tuesday; bears have pushed the pair to the Asian low of 102.45 and aimed at 102.40.

Squeezed between a rock and a hard place

USD/JPY consolidated with bearish bias on Monday after a failed attempt to close above 102.80. Now large option barrier located at 101.60 might limit the short term upside potential of the pair, while the downside is likely to be capped by 102.20 (another option barrier and 200-day moving average). Japanese calendar is next to empty this week, while the BOJ meeting is going to be a non-event, thus JPY will be influenced by external factors. From the fundamental point of view the US Non-Manufacturing ISM is the key event of the day. Positive data may support USD across the board and reverse the losses incurred due to lower than expected labour market statistics. If this the case, USD/JPY might settle above 102.80 and even move towards 103.00.

What are today’s key USD/JPY levels?

Today's central pivot point can be found at 102.57, with support below at 102.40, 102.24 and 102.07 with resistance above at 102.74, 102.91, and 103.07. Hourly Moving Averages are bullish, with the 200SMA bullish at 102.22 and the daily 20EMA bullish at 102.02. Hourly RSI is bearish at 40.

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