FXStreet (London) - Having made a high at 102.15 overnight, USD/JPY declined to post a low at 101.96, before finding support at the psychological level and climbing to where it is currently trading at 102.08, up 0.01% on the day so far.

There was no Japanese economic data overnight, reflecting the slow movement during the Asia session. Focus is expected to shift to Friday’s BoJ meeting where QQE is expected to remain unchanged, despite recent official commentary indicating that an exit strategy is being considered at some levels. Over recent sessions, the 102 level has been one of interest, especially with the June downtrend from the June 4 high at 102.53. The swift drop to daily lows this morning looks to be led by EUR/JPY flow following better than expect Eurozone Industrial Production numbers.

USD/JPY Levels

Looking to the FXStreet OB/OS Index, we see that the market is neutral in sentiment, but slightly bullish on the FXStreet Trend Index. Daily RSI is neutral at 48.62 while daily volatility bandwidth is expanding and presently at 166 pips. Looking back over the past four weeks we can see that 13:00-14:00 GMT is the most volatile hour of the day, with an average hourly movement of 15 pips.

Spot is presently trading at 102.08, and next resistance can be seen at 102.11 (Daily Classic PP), 102.15 (Daily High), 102.16 (Daily 20 SMA), 102.25 (Daily 100 SMA) and 102.31 (Hourly 100 SMA). To the downside we see next support at 102.07 (Daily Open), 102.07 (Weekly Low), 102.06 (Hourly 20 EMA), 101.96 (Daily Low) and 101.88 (Weekly Classic S1).

Related Articles
  1. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  2. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  3. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  4. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  5. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  6. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  7. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  8. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  9. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  10. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!