30 Jan 2014
USD/JPY struggling to overcome 102.50
FXstreet.com (Edinburgh) - The USD/JPY found decent support around the key 102.00 handle post-FOMC meeting, gathering pace afterwards with 102.50 on the horizon.
USD/JPY eyes on the US GDP
The Fed did not leave room for surprises on Wednesday, tapering its monthly asset purchases by $10 billion, broadly in line with market expectations and leaving the price action mostly anaemic in the 102.00/20 range. Ahead in the day, the advanced US GDP figures for the fourth quarter will grab all the attention in the US session. “The risks to this call are tilted to the upside; strong consumption should provide a meaningful lift to growth, with personal consumption activity posting its fastest pace of growth since late-2010. Pending home sales will also be watched amid recent weakening in US housing momentum, and we expect the tone to remain weak with a 1.5% decline in December”, noted Annette Beacher, Head of Asia-Pacific Research at TD Securities.
USD/JPY levels to watch
At the moment the pair is up 0.19% at 102.41 with the next resistance at 103.26 (high Jan.28) ahead of 103.35 (Tenkan Sen line) and finally 103.58 (high Jan.24). On the downside, a break below 101.77 (38.2% of 95.81-105.45) would expose 101.76 (2014 low Jan.27).
USD/JPY eyes on the US GDP
The Fed did not leave room for surprises on Wednesday, tapering its monthly asset purchases by $10 billion, broadly in line with market expectations and leaving the price action mostly anaemic in the 102.00/20 range. Ahead in the day, the advanced US GDP figures for the fourth quarter will grab all the attention in the US session. “The risks to this call are tilted to the upside; strong consumption should provide a meaningful lift to growth, with personal consumption activity posting its fastest pace of growth since late-2010. Pending home sales will also be watched amid recent weakening in US housing momentum, and we expect the tone to remain weak with a 1.5% decline in December”, noted Annette Beacher, Head of Asia-Pacific Research at TD Securities.
USD/JPY levels to watch
At the moment the pair is up 0.19% at 102.41 with the next resistance at 103.26 (high Jan.28) ahead of 103.35 (Tenkan Sen line) and finally 103.58 (high Jan.24). On the downside, a break below 101.77 (38.2% of 95.81-105.45) would expose 101.76 (2014 low Jan.27).