13 Dec 2013
USD/JPY up Thursday and thus far Friday; 103.73 key resistance; 101.62 is support
FXstreet.com (Barcelona) - The USD/JPY ramped higher Thursday despite an increase in weekly jobless claims in the US – perhaps a result of higher US retail sales and the perception that Fed QE tapering is bound to happen sooner rather than later.
USD/JPY traders to monitor minor Japanese data and light US data flow
While the biggest influence on the USD/JPY is likely to continue to be the perception surrounding the US Fed’s QE-tapering plans, USD/JPY traders will also be monitoring the following data points out of Japan and the US Friday:
• Japanese Industrial Production
• Japanese Capacity Utilization
• US Producer Price Index
Technical outlook for USD/JPY
Technicians still say the USD/JPY could be in the early stages of an downside move that has an eventual downside target that takes the cross all the way back down to 94 (from 103 and change currently). Before 94 is anywhere near approached, the first level of 101.62 will have to be broken. A close above 103.54 will be needed to change this bearish outlook for the pair and a close above 103.73 will confirm that the more bullish scenario is unfolding.
USD/JPY traders to monitor minor Japanese data and light US data flow
While the biggest influence on the USD/JPY is likely to continue to be the perception surrounding the US Fed’s QE-tapering plans, USD/JPY traders will also be monitoring the following data points out of Japan and the US Friday:
• Japanese Industrial Production
• Japanese Capacity Utilization
• US Producer Price Index
Technical outlook for USD/JPY
Technicians still say the USD/JPY could be in the early stages of an downside move that has an eventual downside target that takes the cross all the way back down to 94 (from 103 and change currently). Before 94 is anywhere near approached, the first level of 101.62 will have to be broken. A close above 103.54 will be needed to change this bearish outlook for the pair and a close above 103.73 will confirm that the more bullish scenario is unfolding.