USD/JPY capped below 97.40

FXstreet.com (Chicago) - USD/JPY extends the short-term bullish channel but remains below the 97.40 zone continuing the parallel price action ahead of Tokyo’s opening.

Data

Earlier in the US, housing market data disappointed with the MBA mortgage applications at -0.6% vs. past 0.3% and export price index results at -1.6% vs. prior -1.1%. In Japan, market participants wait for Tokyo’s opening and foreign bond and equity investments in the country.

USD/JPY Technical Levels


Technically speaking, the pair stalls around the 97.30 zone printing slightly higher highs and bottoms after the closing of Wall Street and ahead of Tokyo’s opening. Data in the US has been made public heavily after the 2-week shutdown. Eamonn Sheridan, from FXLive states “Abenomics is seemingly getting bogged down in the much more difficult structural reform (compared to the relatively straightforward efforts at monetary easing delivered on by Kuroda), USD/JPY has struggled.” Offered at 97.34, the pair oscillates between the supports aligned at 97.20 (October 23rd lows), 96.81 (October 8th lows) followed by 96.39 (August 13th lows) and the resistances set at 97.54 (October 18th lows), 98 (October 15th lows) followed by 98.46 (October 22nd highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis below the EMA20.

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