7 May 2014
USD/JPY loses 101.50, fresh 3-week lows
FXStreet (Córdoba) - The safe-haven yen is on demand Wednesday as worries about Ukraine sparked some risk aversion across markets, sending the USD/JPY to 3-week lows.
The USD/JPY surrendered the 101.50 area and printed a lower low of 101.42 during the European session, having declined more than 150 pips since Friday's NFP high, as the the grim situation in Ukraine is weighing on market's sentiment and boosting the appeal for the yen as safe-haven.
Attention now turns to Fed Chair Yellen, who will testify before the US Congress later in the session. "She is likely to reiterate the message that, while the economy is expected to recover following the weak Q1, there is plenty of slack in the labour market and inflation is far below the Fed's target. The Fed can thus remain patient before raising rates once the QE tapering is over later this year", said the Danske Bank team.
USD/JPY levels to watch
At time of writing, the USD/JPY is trading at the 101.45 zone, recording a 0.23% loss on the day. If the pair breaks below 101.32, the USD/JPY would be trading at its lowest since March 19. Below this latter, next supports are seen at 101.19 (Mar 3 low) and 100.98 (200-day SMA).
To the upside, resistances in case of bounces could be found at 101.75 (May 7 high), 102.00 (psychological level) and 102.18 (may 6 high).
The USD/JPY surrendered the 101.50 area and printed a lower low of 101.42 during the European session, having declined more than 150 pips since Friday's NFP high, as the the grim situation in Ukraine is weighing on market's sentiment and boosting the appeal for the yen as safe-haven.
Attention now turns to Fed Chair Yellen, who will testify before the US Congress later in the session. "She is likely to reiterate the message that, while the economy is expected to recover following the weak Q1, there is plenty of slack in the labour market and inflation is far below the Fed's target. The Fed can thus remain patient before raising rates once the QE tapering is over later this year", said the Danske Bank team.
USD/JPY levels to watch
At time of writing, the USD/JPY is trading at the 101.45 zone, recording a 0.23% loss on the day. If the pair breaks below 101.32, the USD/JPY would be trading at its lowest since March 19. Below this latter, next supports are seen at 101.19 (Mar 3 low) and 100.98 (200-day SMA).
To the upside, resistances in case of bounces could be found at 101.75 (May 7 high), 102.00 (psychological level) and 102.18 (may 6 high).