3 Feb 2014
USD/JPY hits 2-month low
FXStreet (Córdoba) - The USD/JPY failed to hold above the 102.00 mark and stretched to fresh 2-month lows during the European session, weighed by the cautious mood in financial markets.
With the Nikkei shedding 2%, the USD/JPY broke decisively below 102.00 and slid toward 101.66 before finding support. At time of writing, the pair is trading at 101.90, 0.1% below its opening price, ahead of US ISM manufacturing data.
USD/JPY technical outlook
"The pair remains vulnerable to the downside following its last week losses. A follow through lower is snow underway suggesting further decline with eyes on the 101.50 level a possibility. A cut through here will call for a run at the 101.00 level where a breach will turn attention to the 100.00 level, its big psycho level. We expect a bounce higher off this level if tested", said Mohammed Isah, analyst at FXTechstrategy. "On the other hand, resistance resides at the 102.85 level where a violation will turn focus to the 104.50 level and then the 104.00 level".
With the Nikkei shedding 2%, the USD/JPY broke decisively below 102.00 and slid toward 101.66 before finding support. At time of writing, the pair is trading at 101.90, 0.1% below its opening price, ahead of US ISM manufacturing data.
USD/JPY technical outlook
"The pair remains vulnerable to the downside following its last week losses. A follow through lower is snow underway suggesting further decline with eyes on the 101.50 level a possibility. A cut through here will call for a run at the 101.00 level where a breach will turn attention to the 100.00 level, its big psycho level. We expect a bounce higher off this level if tested", said Mohammed Isah, analyst at FXTechstrategy. "On the other hand, resistance resides at the 102.85 level where a violation will turn focus to the 104.50 level and then the 104.00 level".