5 May 2014
USD/JPY breaches 102.00
FXStreet (Edinburgh) - The USD/JPY is now navigating in a consolidation pattern below the 102.00 handle, in line with the generalized thin trade.
USD/JPY flat following holiday mood
The Children’s Day holiday in Japan prompts spot to keep a very tight range around 102.00 the figure at the beginning of the week, extending the correction lower from post-Payrolls peaks just above the 103.00 mark. Emmanuel Ng, FX Strategist at OCBC Bank, commented, “The pair may potentially contemplate a sustained break below 102.00 if the greenback (especially US yields) continues to soften. The support at 101.50 may provide an initial brake on dips with any flare up in geopolitical tensions also likely to weigh on the pair. On the topside, the 55-day MA (102.40) may also serve as a useful rallying point”.
USD/JPY levels to watch
The pair is now losing 0.24% at 101.94 facing the initial support at 101.86 (low Apr.17) ahead of 101.81 (low Apr.16) and then 101.50 (low Apr.15). On the upside, a breakout of 102.43 (daily cloud base) would open the door to 102.73 (Kijun Sen) and finally 103.02 (high May 2).
USD/JPY flat following holiday mood
The Children’s Day holiday in Japan prompts spot to keep a very tight range around 102.00 the figure at the beginning of the week, extending the correction lower from post-Payrolls peaks just above the 103.00 mark. Emmanuel Ng, FX Strategist at OCBC Bank, commented, “The pair may potentially contemplate a sustained break below 102.00 if the greenback (especially US yields) continues to soften. The support at 101.50 may provide an initial brake on dips with any flare up in geopolitical tensions also likely to weigh on the pair. On the topside, the 55-day MA (102.40) may also serve as a useful rallying point”.
USD/JPY levels to watch
The pair is now losing 0.24% at 101.94 facing the initial support at 101.86 (low Apr.17) ahead of 101.81 (low Apr.16) and then 101.50 (low Apr.15). On the upside, a breakout of 102.43 (daily cloud base) would open the door to 102.73 (Kijun Sen) and finally 103.02 (high May 2).