26 Sep 2013
USD/JPY breaks support but bounces off 98.26 lows
FXstreet.com (Chicago) - USD/JPY weakened at Tokyo’s opening dragged by a losing Nikkei 225 printing 1.20% lows. The pair reached 98.26 bottoms but seems to consolidate a potential reversal.
Tax hikes and debt deficit talks
Wall Street closed with losses with the Dow down 0.40%, the Nasdaq down 0.19% and the S&P 500 down 0.27%. Tokyo registers losses, matching Wall Street’s performance with the Nikkei down 1.20%. On recent announcements, LDP’s Noda said Prime Minister Abe will announce economic measures on October 1st after the tankan survey results. In Washington, policy makers continue debating whether or not the deficit budget should be increased and whether or not measures to reduce the debt should be taken soon.
USD/JPY Technical Levels
Violating immediate support at 98.45, the pair continues printing lower highs and lower lows extending the bearish trendline that started last September 18th, FOMC and Fed’s no tapering day. The primary trend remains bullish but the secondary trend is now red matched by the short-term price action. Offered at 98.31, the pair oscillates between supports aligned at 98.16 (August 18th highs), 97.76 (August 28th highs) followed by 97.45 (August 29th lows) and the resistances set at 98.45 (September 13th lows), 98.73 (September 17th lows) ahead of 99 (September 24th highs). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis and remains below the EMA20.
Tax hikes and debt deficit talks
Wall Street closed with losses with the Dow down 0.40%, the Nasdaq down 0.19% and the S&P 500 down 0.27%. Tokyo registers losses, matching Wall Street’s performance with the Nikkei down 1.20%. On recent announcements, LDP’s Noda said Prime Minister Abe will announce economic measures on October 1st after the tankan survey results. In Washington, policy makers continue debating whether or not the deficit budget should be increased and whether or not measures to reduce the debt should be taken soon.
USD/JPY Technical Levels
Violating immediate support at 98.45, the pair continues printing lower highs and lower lows extending the bearish trendline that started last September 18th, FOMC and Fed’s no tapering day. The primary trend remains bullish but the secondary trend is now red matched by the short-term price action. Offered at 98.31, the pair oscillates between supports aligned at 98.16 (August 18th highs), 97.76 (August 28th highs) followed by 97.45 (August 29th lows) and the resistances set at 98.45 (September 13th lows), 98.73 (September 17th lows) ahead of 99 (September 24th highs). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis and remains below the EMA20.