18 Jan 2016
USD/JPY awaits Chinese Q4 GDP for direction
FXStreet (Guatemala) - USD/JPY's downside slowed up into last week's close with a minor recovery taking place from below the 117 handle with some improvement in risk.
However, the recovery is stalling as we progress through the start of the week in the US session meeting resistance just ahead of the hourly 50 sma at 117.42. With most of the US out we will await the Asian session and China taking the stage once again. China will report GDP for Q4 and this should be the highlight event of the week while Fed officials are absent until the FOMC next week. Should China report a bad number that market will likely look for safe havens which usually supports the Yen.
USD/JPY levels
Technically, USD/JPY is showing signs of stabilization off the lower end of its recent range as noted by Eric Theoret, CFA, CMT FX Strategist at Scotiabank. "Risk is elevated as we consider the lack of confirmation from momentum indicators and positive divergence that developed over the past week." A break to the upside through the 50 sma on the hourly will be bullish short term and price will target the 200 sma and resistance around there at 117.74/90. A sell-off targets the lows of August 2015 at 116.13.
However, the recovery is stalling as we progress through the start of the week in the US session meeting resistance just ahead of the hourly 50 sma at 117.42. With most of the US out we will await the Asian session and China taking the stage once again. China will report GDP for Q4 and this should be the highlight event of the week while Fed officials are absent until the FOMC next week. Should China report a bad number that market will likely look for safe havens which usually supports the Yen.
USD/JPY levels
Technically, USD/JPY is showing signs of stabilization off the lower end of its recent range as noted by Eric Theoret, CFA, CMT FX Strategist at Scotiabank. "Risk is elevated as we consider the lack of confirmation from momentum indicators and positive divergence that developed over the past week." A break to the upside through the 50 sma on the hourly will be bullish short term and price will target the 200 sma and resistance around there at 117.74/90. A sell-off targets the lows of August 2015 at 116.13.