14 Oct 2013
USD/JPY retests daily lows
FXstreet.com (Córdoba) - The USD/JPY came under mild pressure Monday as the US government shutdown enters its third week and with no signs of progress as the debt ceiling deadline approaches.
USD/JPY left a downward opening gap and dropped to the 98.10 area during the Asian session, before finding support and recovering somewhat. With the calendar empty in holiday-thinned markets, the pair was confined to a phase of consolidation. At time of writing, USD/JPY is trading around 98.15, a few pips below its opening price.
USD/JPY technical outlook
From a technical perspective, Stoyan Mihaylov, analyst at DeltaStock.com notes that double top at 98.50 signals a minor reversal for a corrective dip towards 97.60, before advancing higher, towards 99.15 target area.
In terms of technical levels, if USD/JPY breaks below the 98.10 level, next supports could be found at 98.00 (psychological level) and 97.60 (10-day SMA). On the other hand, resistances are seen at 98.50 (100-day SMA) and 98.70 (Oct 1 high).
USD/JPY left a downward opening gap and dropped to the 98.10 area during the Asian session, before finding support and recovering somewhat. With the calendar empty in holiday-thinned markets, the pair was confined to a phase of consolidation. At time of writing, USD/JPY is trading around 98.15, a few pips below its opening price.
USD/JPY technical outlook
From a technical perspective, Stoyan Mihaylov, analyst at DeltaStock.com notes that double top at 98.50 signals a minor reversal for a corrective dip towards 97.60, before advancing higher, towards 99.15 target area.
In terms of technical levels, if USD/JPY breaks below the 98.10 level, next supports could be found at 98.00 (psychological level) and 97.60 (10-day SMA). On the other hand, resistances are seen at 98.50 (100-day SMA) and 98.70 (Oct 1 high).