6 Feb 2014
Flash: Trade Yen range, fade upside breaks ahead of NFP - FXStreet
FXStreet (Guatemala) - Ivan Delgado, the Head of Asian Editors at FXStreet noted a period of consolidation for USD/JPY.
Key Quotes:
“…roughly 100/120 pips range - looks like the most predictable market dynamics for Thursday, with the upside well capped between 101.70/102.00, while the downside should see persistent buying as price dips below 101.00 down to 100.75”.
“Risks to the outlook is an upside range breakout in the Nikkei 225. Clearance above 14,320/30 in the index may see Yen weakness accelerate, potentially overshooting the 101.70 towards 102.00, as present rate is only a short distance away from critical intraday resistances”.
“However, any break higher will most likely be faded as order flow (necessary to see sustained follow through) should be limited ahead of the Friday NFP risk event”.
“On the downside, risks of a range breakout through 100.75 is seen as minimal, and even if 13.950/14,000 in the Nikkei 225 gives up, should keep USD/JPY within familiar levels given distance from range low”
Key Quotes:
“…roughly 100/120 pips range - looks like the most predictable market dynamics for Thursday, with the upside well capped between 101.70/102.00, while the downside should see persistent buying as price dips below 101.00 down to 100.75”.
“Risks to the outlook is an upside range breakout in the Nikkei 225. Clearance above 14,320/30 in the index may see Yen weakness accelerate, potentially overshooting the 101.70 towards 102.00, as present rate is only a short distance away from critical intraday resistances”.
“However, any break higher will most likely be faded as order flow (necessary to see sustained follow through) should be limited ahead of the Friday NFP risk event”.
“On the downside, risks of a range breakout through 100.75 is seen as minimal, and even if 13.950/14,000 in the Nikkei 225 gives up, should keep USD/JPY within familiar levels given distance from range low”