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20 Mar 2014
USD/JPY is drifting lower early in Asia
FXStreet (Moscow) - USD/JPY dropped to the current Asian low of 102.24 on profit-taking; the bearish sentiments are still strong
FOMC was a game changer for USD/JPY
USD/JPY gained more than 100 pips on Wednesday due to the spectacular dollar rise triggered by FOMC meeting results. The pair broke above 102.00 and finished the day at 102.49. But further upside USD/JPY may be limited as the risk-aversion theme keeps JPY in demand. Moreover the fiscal year ends on March 31, so investors are hesitant to play aggressively agains JPY that may be supported by the repatriation flows. With nothing interesting on the calendar, the pair spend the Asian session in a pretty narrow range, consolidating yesterday’s gains. BOJ Governor Haruhiko Kurodaa is scheduled to speak during European hours, but he is not expected to say anything new. We expect a bit more volatile, but still rather quiet European session, as traders will adjust their positions ahead of new bunch of macro statistic from the USA. From the technical point of view, the nearest short-term support comes at current Asian lows of 102.21. If it is broken, the downside will accelerate to 102.00. The resistance is seen at 102.65-70.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 102.10, with support below at 101.51, 100.69 and 100.10, with resistance above at 102.92, 103.51, and 104.33. Hourly Moving Averages are bullish, with the 200SMA at 102.31 and the daily 20EMA at 102.25. Hourly RSI is neutral at 73.
FOMC was a game changer for USD/JPY
USD/JPY gained more than 100 pips on Wednesday due to the spectacular dollar rise triggered by FOMC meeting results. The pair broke above 102.00 and finished the day at 102.49. But further upside USD/JPY may be limited as the risk-aversion theme keeps JPY in demand. Moreover the fiscal year ends on March 31, so investors are hesitant to play aggressively agains JPY that may be supported by the repatriation flows. With nothing interesting on the calendar, the pair spend the Asian session in a pretty narrow range, consolidating yesterday’s gains. BOJ Governor Haruhiko Kurodaa is scheduled to speak during European hours, but he is not expected to say anything new. We expect a bit more volatile, but still rather quiet European session, as traders will adjust their positions ahead of new bunch of macro statistic from the USA. From the technical point of view, the nearest short-term support comes at current Asian lows of 102.21. If it is broken, the downside will accelerate to 102.00. The resistance is seen at 102.65-70.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 102.10, with support below at 101.51, 100.69 and 100.10, with resistance above at 102.92, 103.51, and 104.33. Hourly Moving Averages are bullish, with the 200SMA at 102.31 and the daily 20EMA at 102.25. Hourly RSI is neutral at 73.