USD/JPY bulls lost the initiative

By FXstreet.com | July 16, 2014 AAA

FXStreet (Moscow) - USD/JPY has tumbled to 101.50 after opening at 101.71 despite positive Nikkei 225 dynamics as strong technical factors come into play.



Not so fast, please



USD/JPY managed to climb to 101.78 on Wednesday, but bullish momentum waned as the pair finished the day with marginal gains. Obviously, the market is not ready to push USD much higher against JPY even in the light of higher than expected PPI and a tad hawkish Yellen.From the fundamental point of view there is little to chew on today, so USD/JPY might be limited by 101.20 support where strong demand on approach is likely to discourage USD bears. On the upside, the bulls desperately need to overcome 101.70/78 zone to get a chance to visit 102.00 resistance.



What are today’s key USD/JPY levels?



Today's central pivot point can be found at 101.70, with support below at 101.60, 101.52 and 102.42 with resistance above at 101.78, 101.88, and 101.96. Hourly Moving Averages are mostly bearish, with the 200SMA at 101.62 and the daily 20EMA at 101.71. Hourly RSI is bearish at 34.



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