14 Oct 2013
USD/JPY bulls retreat – the cross opens lower Sunday after four days of gains
FXstreet.com (Barcelona) - The USD/JPY opened the new week on a mild sour note as global investors processed the news out of Washington as well as China.
USD/JPY traders to have to rely on Washington news for directional push
Sunday night and Monday, there will be a data vacuum from Japan and the US. USD/JPY traders will have to continue to get short-term direction from the political news flowing out of Washington, D.C.
Over the weekend, there may have actually been a step or two taken in the wrong direction according to several politicians during their appearances on the weekly network talk shows on Sunday. However, those same politicians when pressed voiced their optimism regarding the prospects of reaching an agreement on the debt ceiling and government shutdown by the October 17th deadline.
The other news over the weekend that may have an impact on USD/JPY traders thought processes came from China. The Chinese trade balance data was surprisingly bad – possibly putting a damper on the global growth / rebound story. Part of that report, however, indicated that exports to Japan actually increased – which should be taken as Yen-bullish / USDJPY-bearish.
Technical outlook for USD/JPY
Technicians note that the first possible support for USD/JPY is at 98.07 with 97.75 and 97.55 backing that level up. All three of those levels are Fibonacci retracements of the four day rally that took place last week. Resistance comes in at Friday’s high of 98.59 and is backed up by the 9/30 peak at 98.72.
USD/JPY traders to have to rely on Washington news for directional push
Sunday night and Monday, there will be a data vacuum from Japan and the US. USD/JPY traders will have to continue to get short-term direction from the political news flowing out of Washington, D.C.
Over the weekend, there may have actually been a step or two taken in the wrong direction according to several politicians during their appearances on the weekly network talk shows on Sunday. However, those same politicians when pressed voiced their optimism regarding the prospects of reaching an agreement on the debt ceiling and government shutdown by the October 17th deadline.
The other news over the weekend that may have an impact on USD/JPY traders thought processes came from China. The Chinese trade balance data was surprisingly bad – possibly putting a damper on the global growth / rebound story. Part of that report, however, indicated that exports to Japan actually increased – which should be taken as Yen-bullish / USDJPY-bearish.
Technical outlook for USD/JPY
Technicians note that the first possible support for USD/JPY is at 98.07 with 97.75 and 97.55 backing that level up. All three of those levels are Fibonacci retracements of the four day rally that took place last week. Resistance comes in at Friday’s high of 98.59 and is backed up by the 9/30 peak at 98.72.