23 Oct 2013
USD/JPY recovery capped by 97.50
FXstreet.com (Córdoba) - The USD/JPY resumed the downside following a short-lived bounce and is back trading at the lower end of today's range.
The USD/JPY recovery attempt was capped by the 97.50 zone, confining the pair to a phase of consolidation that has extended over the last hours. At time of writing, USD/JPY is trading at the 97.25 zone, recording a 0.9% loss since opening, having printed a low of 97.15 during the European trade. The yen strengthened versus the dollar Wednesday as sentiment deteriorated amid concerns over tighter Chinese monetary policy and fears of a new wave of defaults in China's banks.
USD/JPY technical perspective
From a technical perspective, Valeria Bednarik, chief analyst at FXstreet.com notes that even though short-term indicators correct from oversold readings, unless USD/JPY recovers above 97.50 level, the downside continues to be favored.
The analyst places supports at 97.20, 96.80 and 96.50, while resistances are seen at 97.50, 97.90 and 98.40.
The USD/JPY recovery attempt was capped by the 97.50 zone, confining the pair to a phase of consolidation that has extended over the last hours. At time of writing, USD/JPY is trading at the 97.25 zone, recording a 0.9% loss since opening, having printed a low of 97.15 during the European trade. The yen strengthened versus the dollar Wednesday as sentiment deteriorated amid concerns over tighter Chinese monetary policy and fears of a new wave of defaults in China's banks.
USD/JPY technical perspective
From a technical perspective, Valeria Bednarik, chief analyst at FXstreet.com notes that even though short-term indicators correct from oversold readings, unless USD/JPY recovers above 97.50 level, the downside continues to be favored.
The analyst places supports at 97.20, 96.80 and 96.50, while resistances are seen at 97.50, 97.90 and 98.40.