USD/JPY is dancing under 102.00

By FXstreet.com | June 18, 2014 AAA

FXStreet (Moscow) - USD/JPY opened the day at 101.89, reached 101.90 but moved back at the moment.

USD/JPY is scared to rise

Japan will report a bunch of indexes today, and although the market traditionally ignores the data, the leading indicator is of interest from the point of assesing any early signs of negative effect from the recently raised sales tax in Japan. We know that the BOJ is not ready to stimulate the economy additionally until it gets the clear evidence the economy needs it. Recent data showed that both exports and imports weakened with more than half of the decline in exports caused by a drop in demand for transport equipment such as cars. It happened for the first time in 1.5 years. Department store sales showed a decline for the second month in a row in May. More data of such quality may gradually convince the regulator to step up with new measures, and this will be the signal to buy pair again.

What are today’s key USD/JPY levels?

Today's central pivot point can be found at 102.05, with support below at 101.74, 101.55 and 101.24 with resistance above at 102.23, 102.55, and 102.73. Hourly Moving Averages are bearish, with the 200SMA at 102.13 and the daily 20EMA bearish at 102.07. Hourly RSI is bearish at 39.

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