USD/JPY steady after US Markit PMI

By FXstreet.com | June 23, 2014 AAA

FXStreet (Córdoba) - The USD/JPY entered a consolidation phase after sliding throughout the Asian session, erasing Friday’s gains, with a better-than-expected US Markit PMI reading having virtually no impact on the dollar.

The USD/JPY fell to a low of 101.80 as the dollar remains on the back foot following a FOMC meeting last week, which offered little indication the Fed will hike rates anytime soon. However, the pair managed to stabilize and has spent the last hours trading within a narrow range below 102.00. USD/JPY was last down 0.20% at 101.85.

USD/JPY technical outlook

“The USD/JPY moves back and forth around 102.00, presenting a bearish tone in the short term, as price develops below moving averages and indicators stand in negative territory, with momentum presenting a bearish slope”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart technical readings continue hovering around their midlines. Immediate support stands around 101.65, and a break below it is required to confirm a downward continuation towards 101.20/30 price zone”.

In terms of technical levels, Bednarik locates next supports at 101.65, 101.20 and 100.70. On the flip side, resistances are seen at 102.00, 102.35 and 102.80.

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