5 Sep 2013
USD/JPY overbought and facing a key hurdle at 99.94
FXstreet.com (Barcelona) - The USD/JPY has been ripping higher recently as Japanese economic and nuclear concerns are combining with the current “risk on” atmosphere to form a toxic mix for the Yen.
USD/JPY dropping after Japanese data – possibly a coincidence
USDJPY traders have seen a nearly unabated rally over the last week – one that has brought the cross right up against key “correction resistance” at 99.94. While the DXY took a breather Wednesday versus other currencies, it actually held up relatively well versus the Yen – which really points out how weak the Yen has been.
Early Thursday, we’re seeing a little pullback in the USD/JPY – which could be due to technical factors or possibly due to the foreign investment in Japanese securities data.
Later today, US data will join Syria chatter as the key drivers of the USD/JPY Thursday.
Technical outlook for USD/JPY
Technicians are pointing to key “correction resistance” at 99.94 to 100.35 as the next upside target for USD/JPY. They do point out, however, that Yen futures have already broken down below intermediate-term support – thereby increasing the odds of USD/JPY breaking out. Support comes in at 99 and 98.50 for USD/JPY.
USD/JPY dropping after Japanese data – possibly a coincidence
USDJPY traders have seen a nearly unabated rally over the last week – one that has brought the cross right up against key “correction resistance” at 99.94. While the DXY took a breather Wednesday versus other currencies, it actually held up relatively well versus the Yen – which really points out how weak the Yen has been.
Early Thursday, we’re seeing a little pullback in the USD/JPY – which could be due to technical factors or possibly due to the foreign investment in Japanese securities data.
Later today, US data will join Syria chatter as the key drivers of the USD/JPY Thursday.
Technical outlook for USD/JPY
Technicians are pointing to key “correction resistance” at 99.94 to 100.35 as the next upside target for USD/JPY. They do point out, however, that Yen futures have already broken down below intermediate-term support – thereby increasing the odds of USD/JPY breaking out. Support comes in at 99 and 98.50 for USD/JPY.