11 Apr 2014
USD/JPY bounces off 101.30 despite heavy Nikkei
FXStreet (Bali) - After being pressured in early Tokyo, the strong>USD/JPY has been able to recover from 101.30 support, bouncing towards 101.60/65 session high, where it has stabilized.
The area USD/JPY has been testing sub 101.20/30 is of high technical importance, with the rate consistently being rejected off it since last lost on February 5th. One sign that bids around the area remains strong is the fact that despite the Nikkei 225 continues heavy at 2.5%, some short covering in the pair has been noted, recovering over 30 pips.
Technically, Valeria Bednaria, Chief Analyst at FXStreet, notes: "Currently recovering some ground price is unable to advance beyond the 102.00 figure, with the hourly chart showing indicators heading higher below their midlines and 100 SMA extending its bearish slope and capping the upside around key 102.60 price zone. In bigger time frames however the bearish tone prevails, with still room for a slide down to 101.20 price zone."
The area USD/JPY has been testing sub 101.20/30 is of high technical importance, with the rate consistently being rejected off it since last lost on February 5th. One sign that bids around the area remains strong is the fact that despite the Nikkei 225 continues heavy at 2.5%, some short covering in the pair has been noted, recovering over 30 pips.
Technically, Valeria Bednaria, Chief Analyst at FXStreet, notes: "Currently recovering some ground price is unable to advance beyond the 102.00 figure, with the hourly chart showing indicators heading higher below their midlines and 100 SMA extending its bearish slope and capping the upside around key 102.60 price zone. In bigger time frames however the bearish tone prevails, with still room for a slide down to 101.20 price zone."