USD/JPY retesting 101.50 support

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Bali) - USD/JPY is trading at 101.59, down -0.14% on the day, having posted a daily high at 101.74 and low at 101.50.

Risk appetite saw a gradual depreciation of the Japanese Yen earlier on the week, however, the sell-off in US equities caused some damage to those Yen shorts. Moreover, current mild weakness in the Nikkei 225 has not helped the case to go long the Yen crosses during today's Asian session.

USD/JPY spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bearish. RSI is in neutral territory at 42.29, up from it’s last hourly close at 32.69, while ADX is trending above 30 at 34.18, up from 14.43 at the lasthourly close.

According to Kathy Lien, Co-Founder at BK Asset Management: "For the third time this year, USD/JPY attempted to close below the 200-day Simple Moving Average and failed. From a technical perspective a close below the SMA would be significant because it could mark the beginning of a broader downtrend for USD/JPY. However in this low volatility environment, we expect the moves to be closer in magnitude to 2012 than 2009 to 2011."

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