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19 Aug 2013
USD/JPY opens higher but looks weak after Thursday’s bearish engulfing candle
FXstreet.com (Barcelona) - The USD/JPY reacted positively to some Japanese data early Monday, but technicians say the likely course is lower for the cross in the near term. Data from the US later this week will drive the trading action.
USD/JPY will likely bide time until FOMC minutes and Jackson Hole
Although there is some minor data flow early this week for USD/JPY, the major directional drivers will come from FOMC / tapering-related news flow later in the week. On Wednesday, the Fed’s policy committee meeting minutes will be released and Thursday and Friday will bring news, commentary and plenty of speculation from the Jackson Hole Symposium in the US.
Technical outlook for USD/JPY
Despite the initial upside this week, the USD/JPY looks to technicians like it wants to move lower in the near-term. The cross posted a “bearish engulfing” candle on Thursday – indicating a short-term reversal in direction (lower) has taken place. Technicians say their downside target for the cross is down at the macro “correction support” level at 92.525 (which also corresponds with horizontal line support). However, if the USD/JPY rips higher instead, the target above first resistance of 98.64 would be 99.89.
USD/JPY will likely bide time until FOMC minutes and Jackson Hole
Although there is some minor data flow early this week for USD/JPY, the major directional drivers will come from FOMC / tapering-related news flow later in the week. On Wednesday, the Fed’s policy committee meeting minutes will be released and Thursday and Friday will bring news, commentary and plenty of speculation from the Jackson Hole Symposium in the US.
Technical outlook for USD/JPY
Despite the initial upside this week, the USD/JPY looks to technicians like it wants to move lower in the near-term. The cross posted a “bearish engulfing” candle on Thursday – indicating a short-term reversal in direction (lower) has taken place. Technicians say their downside target for the cross is down at the macro “correction support” level at 92.525 (which also corresponds with horizontal line support). However, if the USD/JPY rips higher instead, the target above first resistance of 98.64 would be 99.89.