14 Mar 2014
USD/JPY consolidating near 101.60
FXStreet (Edinburgh) -The USD/JPY continues to grind lower on Friday, currently attempting a sort of consolidation patter around 101.70/60.
USD/JPY lower on risk aversion
Increasing concerns regarding the Chinese economy coupled with geopolitical tensions in the Russia-Ukraine border have accelerated inflows to the safe haven JPY, dragging spot lower from Monday’s peaks near 103.40. Data-wise in Japan, February’s Industrial Production advanced at an annual pace of 10.3%, surpassing the previous 7.1% gain. “The materialisation of weaker than expected growth and inflation may prompt the BoJ to ease monetary policy further later this year providing a fresh catalyst for further yen weakness. But in the near-term more risk-averse trading conditions may continue to encourage a stronger yen”, observed Lee Hardman, Currency Analyst at BTMU.
USD/JPY levels to watch
As of writing the pair is down 0.22% at 101.61 with the next support at 101.50 (low Mar.14) followed by 101.40 (low Mar.4) and then 101.00 (weekly Kijun Sen). On the upside, a break above 102.49 (Kijun Sen) would aim for 102.59 (Tenkan Sen) and then 102.60 (daily cloud base).
USD/JPY lower on risk aversion
Increasing concerns regarding the Chinese economy coupled with geopolitical tensions in the Russia-Ukraine border have accelerated inflows to the safe haven JPY, dragging spot lower from Monday’s peaks near 103.40. Data-wise in Japan, February’s Industrial Production advanced at an annual pace of 10.3%, surpassing the previous 7.1% gain. “The materialisation of weaker than expected growth and inflation may prompt the BoJ to ease monetary policy further later this year providing a fresh catalyst for further yen weakness. But in the near-term more risk-averse trading conditions may continue to encourage a stronger yen”, observed Lee Hardman, Currency Analyst at BTMU.
USD/JPY levels to watch
As of writing the pair is down 0.22% at 101.61 with the next support at 101.50 (low Mar.14) followed by 101.40 (low Mar.4) and then 101.00 (weekly Kijun Sen). On the upside, a break above 102.49 (Kijun Sen) would aim for 102.59 (Tenkan Sen) and then 102.60 (daily cloud base).