USD/JPY on its way to 102.00?

By FXstreet.com | August 12, 2014 AAA

FXStreet (Edinburgh) - Today’s appreciation of the Japanese yen vs. its American counterpart seems to have found sellers around 102.10, with the USD/JPY now navigating the 102.15/10 band.

USD/JPY lower on risk aversion

The resumption of the risk-on sentiment following easing geopolitical tensions kept spot in the upper end of the range in early trade, although a resumption of JPY-buying is now dragging the pair to session lows around 102.10. Next of relevance in Japan will be the BoJ minutes and the Q2 GDP figures, while Retail Sales in June will be the most salient event in the US docket tomorrow (0.2% MoM exp.). Emmanuel Ng, FX Strategist at OCBC Bank, suggested “In the interim, with the BOJ continuing to sound off on potentially weak exports, the pair may continue to brush up against its 200-day MA (102.32) ahead of 102.50 while the 55-day MA (101.96) may support on any test of the 102.00 area”.

USD/JPY relevant levels

The pair is now dropping 0.08% at 102.10 with the next support at 102.02 (low Aug.11) ahead of 101.51 (low Aug.8) and finally 101.42 (low Jul.24). On the upside, a breakout of 102.37 (high Aug.12) would open the door to 102.46 (high Aug.7) and then 102.64 (high Aug.6).

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