10 Jul 2013
USD/JPY cracks 101.80 support
FXstreet.com (Barcelona) - The USD/JPY exchange rate just broke through support at 100.80, exposing lower levels as traders begin the transition from Asian to Europe.
Position adjustment ahead of FOMC
The dip below 100.80 saw its cheapest quote at 100.60, with traders talking about twilight liquidity and position adjustment ahead of the FOMC minutes as the main cause behind the latest selling episode.
USD/JPY technical outlook
Below the lost support, according to Jim Langlands, Founder at FXCharts, "the pair could head back to 100.00 ahead of 99.70 (23.6% of 93.78/101.52), although the lack of any real action suggests it is unlikely to happen today." For the next hours, if the momentum south extends, watch 100.40 - July 5 swing high - before the big round number gets tested. On the topside, the broken support at 100.80 should act as initial resistance measure. A regain above the latter re-exposes 101.20, Asian high.
Position adjustment ahead of FOMC
The dip below 100.80 saw its cheapest quote at 100.60, with traders talking about twilight liquidity and position adjustment ahead of the FOMC minutes as the main cause behind the latest selling episode.
USD/JPY technical outlook
Below the lost support, according to Jim Langlands, Founder at FXCharts, "the pair could head back to 100.00 ahead of 99.70 (23.6% of 93.78/101.52), although the lack of any real action suggests it is unlikely to happen today." For the next hours, if the momentum south extends, watch 100.40 - July 5 swing high - before the big round number gets tested. On the topside, the broken support at 100.80 should act as initial resistance measure. A regain above the latter re-exposes 101.20, Asian high.