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5 Mar 2014
USD/JPY capped by 102.40
FXStreet (Edinburgh) - The Japanese yen is losing ground against its American counterpart on Wednesday, lifting the USD/JPY to the area of 102.40.
USD/JPY stronger on risk appetite
Tensions between Russia and Ukraine continue to diminish, giving extra support to the risk-on trade and intensifying the outflows from the JPY. There area no significant data releases in Japan hence the US docket – with ADP report, ISM Non-Manufacturing and the Fed’s Beige Book – would likely be the catalyst for further price action of the pair. According to Strategist Emmanuel Ng at OCBC Bank, “The recovery in investor sentiment may keep the pair supported in the near term but a strong extension may prove absent given little obvious US-centric dollar impetus at this juncture. Holding above the 102.00 area may see a near term test towards the 102.80 neighborhood with resistance expected at 103.00 and then at the 55-day MA (103.25)”.
USD/JPY key levels
At the moment the pair is up 0.10% at 102.38 facing the next hurdle at 102.51 (daily cloud base) ahead of 102.61 (high Feb.26) and finally 102.63 (high Feb.25). On the flip side, a breakdown of 102.00 (psychological level) would expose 101.40 (low Mar.4) and then 100.80 (low Feb.5).
USD/JPY stronger on risk appetite
Tensions between Russia and Ukraine continue to diminish, giving extra support to the risk-on trade and intensifying the outflows from the JPY. There area no significant data releases in Japan hence the US docket – with ADP report, ISM Non-Manufacturing and the Fed’s Beige Book – would likely be the catalyst for further price action of the pair. According to Strategist Emmanuel Ng at OCBC Bank, “The recovery in investor sentiment may keep the pair supported in the near term but a strong extension may prove absent given little obvious US-centric dollar impetus at this juncture. Holding above the 102.00 area may see a near term test towards the 102.80 neighborhood with resistance expected at 103.00 and then at the 55-day MA (103.25)”.
USD/JPY key levels
At the moment the pair is up 0.10% at 102.38 facing the next hurdle at 102.51 (daily cloud base) ahead of 102.61 (high Feb.26) and finally 102.63 (high Feb.25). On the flip side, a breakdown of 102.00 (psychological level) would expose 101.40 (low Mar.4) and then 100.80 (low Feb.5).