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21 Oct 2013
USD/JPY rallies off of 97.70 support on Yen-bearish Japanese trade data
FXstreet.com (Barcelona) - The USD/JPY cross opened modestly higher Monday and then got a big boost from very weak Japanese trade numbers.
USD/JPY traders await this week’s data
USD/JPY, the battle of traditional “safe haven” currencies, has been driven recently more by the relative strength of the DXY than that of the Yen. The cease fire in Washington may change the dynamic temporarily, but with more shenanigans just around the corner, we can look forward to the sentiment surrounding the greenback to continue to be the primary influence on the USD/JPY’s movements.
This week’s data calendar for the US and Japan is as follows:
• Monday – Japanese Trade Balance data (already released showing lower than expected economic activity and the worst trade deficit on record– very Yen-bearish); BOJ Governor Kuroda speech; Japanese Activity Indices; US Conference Board Leading Indicators; US Existing Home Sales
• Tuesday – US September Employment Report;
• Wednesday – US Monthly Mortgage Apps; US Export Price Index; US Housing Price Index
• Thursday – Foreign Investment in Japanese Securities; US Weekly Jobless Claims; US Manufacturing PMI; US New Home Sales
• Friday – Japanese Inflation Data; US Durable Goods; US University of Michigan Consumer Sentiment Survey
Technical outlook for USD/JPY
Technicians note that the first support for USD/JPY comes in at the Fibonacci support of 97.70. and is followed by Friday’s session low of 97.55. Resistance comes in at Friday’s high of 98.15 and is followed up by the 10/16 close of 98.75.
USD/JPY traders await this week’s data
USD/JPY, the battle of traditional “safe haven” currencies, has been driven recently more by the relative strength of the DXY than that of the Yen. The cease fire in Washington may change the dynamic temporarily, but with more shenanigans just around the corner, we can look forward to the sentiment surrounding the greenback to continue to be the primary influence on the USD/JPY’s movements.
This week’s data calendar for the US and Japan is as follows:
• Monday – Japanese Trade Balance data (already released showing lower than expected economic activity and the worst trade deficit on record– very Yen-bearish); BOJ Governor Kuroda speech; Japanese Activity Indices; US Conference Board Leading Indicators; US Existing Home Sales
• Tuesday – US September Employment Report;
• Wednesday – US Monthly Mortgage Apps; US Export Price Index; US Housing Price Index
• Thursday – Foreign Investment in Japanese Securities; US Weekly Jobless Claims; US Manufacturing PMI; US New Home Sales
• Friday – Japanese Inflation Data; US Durable Goods; US University of Michigan Consumer Sentiment Survey
Technical outlook for USD/JPY
Technicians note that the first support for USD/JPY comes in at the Fibonacci support of 97.70. and is followed by Friday’s session low of 97.55. Resistance comes in at Friday’s high of 98.15 and is followed up by the 10/16 close of 98.75.