9 Jul 2013
USD/JPY above 101.00
FXstreet.com (Barcelona) - The USD/JPY walked along in the hand of a weaker dollar yesterday.
The USD/JPY slipped from above 101.50 to sit around 100.80/90 but managed to pick up overnight to be handed back over to European markets above 101.00 handle. Time of writing the pair is trading at 101.29. Over the medium-term however, as the Bank of Japan extends monetary accommodation while the US Fed moves gradually towards tighter policy, the market widely expects to see the USD/JPY sustaining the upside. Meanwhile we await the BoJ on Thursday and Fed minutes tomorrow.
USD/JPY Technically bearish
However, Karen Jones, Chief Analyst at Commerzbank, said although we saw the market trade through its cloud yesterday, it has not cleared the 78.6% retracement at 101.60 nor has it cleared the previous uptrend, which now acts as resistance at 101.74. She said, this chart remains uninspiring on the topside and the large divergence of the 240 minute RSI does not bode well and we suspect the market may well fail here. Dankse Bank technical levels for USD/JPY offer supports as 99.50,99.89,100.43,100.71 and Resistances 101.39,101.54,101.80 and 102.45.
The USD/JPY slipped from above 101.50 to sit around 100.80/90 but managed to pick up overnight to be handed back over to European markets above 101.00 handle. Time of writing the pair is trading at 101.29. Over the medium-term however, as the Bank of Japan extends monetary accommodation while the US Fed moves gradually towards tighter policy, the market widely expects to see the USD/JPY sustaining the upside. Meanwhile we await the BoJ on Thursday and Fed minutes tomorrow.
USD/JPY Technically bearish
However, Karen Jones, Chief Analyst at Commerzbank, said although we saw the market trade through its cloud yesterday, it has not cleared the 78.6% retracement at 101.60 nor has it cleared the previous uptrend, which now acts as resistance at 101.74. She said, this chart remains uninspiring on the topside and the large divergence of the 240 minute RSI does not bode well and we suspect the market may well fail here. Dankse Bank technical levels for USD/JPY offer supports as 99.50,99.89,100.43,100.71 and Resistances 101.39,101.54,101.80 and 102.45.