USD/JPY is squeezed between a rock and a hard place

By FXstreet.com | August 06, 2014 AAA

FXStreet (Moscow) - USD/JPY has good bullish perspectives in the long-term, but there are geopolitical obstacles on its way to new upside targets



Geopolitics supported JPY



Another portion of positive US macro statistics failed to inspire the pair for another try at 102.80 as geopolitical tensions started mounting again. Nervous environment forced traders to seek safety in low yielders such as JPY, as a result, USD/JPY dipped below 102.00 level and touched the low at 101.78. Though the pair managed to recover some losses and finish the day marginally above 102.00 pivot, which is positive for longer-term bullish development. Now the key bullish target is seen at 102.41/44, though we would need positive US Jobless Claims report and eased geopolitical tensions to get there.



What are today’s key USD/JPY levels?



Today's central pivot point can be found at 102.18, with support below at 101.70, 101.29 and 100.81 with resistance above at 102.58, 103.06, and 103.47. Hourly Moving Averages are mixed, with the 200SMA bearish at 102.40 and the daily 20EMA flat at 102.07. Hourly RSI is bearish at 43.



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