23 Aug 2013
USD/JPY loses grip on 99.00 level after downtrodden US data
FXstreet.com (New York) - The USD/JPY foreign exchange rate eased off the 99.00 region Friday, having just digested poor housing data that weighs on any potential advance.
In the United States, New Home Sales (MoM) were reported at 0.394M in July, missing expectations of 0.485M. In addition, New Home Sales Change (MoM) fell -13.4% in July, compared to a consensus of -1.4%.
Technically speaking, the USD/JPY is now trading at 98.86, still securing a gain of +0.14% above it’s opening despite operating off its highs of 99.16. Briefing the technicals, the USD/JPY will encounter means of resistance at 99.29, onto 99.71, and 100.44, notes the Mataf.net analyst team.
USD/JPY strategic bias
According to Karen Jones, an analyst at Commerzbank, “The USD/JPY has risen above the 98.66 mid-August high and thus has the four month resistance line at 99.61 in its sights. While the current August high at 99.95 caps on a daily New York closing basis, we will maintain our medium term bearish forecast. Failure at Tuesday’s 96.91 low will push the three month support line at 96.38 and the 78.6% Fibonacci retracement of the June-to-July rise at 95.42 to the fore. Below these lies the five-month support line at 94.91. Over the coming weeks we allow for losses back to the 94.31/93.75 support area. This is where the 200 day moving average and the June low are to be found.”
In the United States, New Home Sales (MoM) were reported at 0.394M in July, missing expectations of 0.485M. In addition, New Home Sales Change (MoM) fell -13.4% in July, compared to a consensus of -1.4%.
Technically speaking, the USD/JPY is now trading at 98.86, still securing a gain of +0.14% above it’s opening despite operating off its highs of 99.16. Briefing the technicals, the USD/JPY will encounter means of resistance at 99.29, onto 99.71, and 100.44, notes the Mataf.net analyst team.
USD/JPY strategic bias
According to Karen Jones, an analyst at Commerzbank, “The USD/JPY has risen above the 98.66 mid-August high and thus has the four month resistance line at 99.61 in its sights. While the current August high at 99.95 caps on a daily New York closing basis, we will maintain our medium term bearish forecast. Failure at Tuesday’s 96.91 low will push the three month support line at 96.38 and the 78.6% Fibonacci retracement of the June-to-July rise at 95.42 to the fore. Below these lies the five-month support line at 94.91. Over the coming weeks we allow for losses back to the 94.31/93.75 support area. This is where the 200 day moving average and the June low are to be found.”