7 May 2014
USD/JPY extends the recovery to 101.70
FXStreet (Edinburgh) - After bottoming out near 101.40, the USD/JPY managed to pick up pace and regain the upper band of today’s range around 101.70.
USD/JPY down on weaker dollar
The greenback continues to trade on the defensive, retreating to multi-month lows in terms of the US Dollar Index despite the recent positive reading from April’s Payrolls. The poor GDP figures in the US economy continue to weigh on yields and hurting investors’ confidence at the same time. The greenback could well see its current decline accelerated in case Chairwoman Yellen reiterates its dovish tone in today’s speech before the Joint Economic Committee. “While we anticipated USD weakness, the ease of which the strong support at 101.80 is taken out is unexpected. While further down-move is still likely for today, waning downward momentum suggests any fresh low to be limited to 101.30/35 (ahead of the strong mid-term support at 101.20). Only a move above 102.00/05 would suggest that a short-term low is in place”, commented Quek Ser Leang, Market Strategist at UOB Group.
USD/JPY levels to consider
As of writing the pair is down 0.03% at 101.66 and a dip beyond 101.32 (low Apr.11) would expose 101.20 (low Mar.3) and finally 101.06 (200-d MA). On the upside, the initial hurdle aligns at 102.19 (high May 6) followed by 102.23 (Tenkan Sen) and then 102.26 (high May 5).
USD/JPY down on weaker dollar
The greenback continues to trade on the defensive, retreating to multi-month lows in terms of the US Dollar Index despite the recent positive reading from April’s Payrolls. The poor GDP figures in the US economy continue to weigh on yields and hurting investors’ confidence at the same time. The greenback could well see its current decline accelerated in case Chairwoman Yellen reiterates its dovish tone in today’s speech before the Joint Economic Committee. “While we anticipated USD weakness, the ease of which the strong support at 101.80 is taken out is unexpected. While further down-move is still likely for today, waning downward momentum suggests any fresh low to be limited to 101.30/35 (ahead of the strong mid-term support at 101.20). Only a move above 102.00/05 would suggest that a short-term low is in place”, commented Quek Ser Leang, Market Strategist at UOB Group.
USD/JPY levels to consider
As of writing the pair is down 0.03% at 101.66 and a dip beyond 101.32 (low Apr.11) would expose 101.20 (low Mar.3) and finally 101.06 (200-d MA). On the upside, the initial hurdle aligns at 102.19 (high May 6) followed by 102.23 (Tenkan Sen) and then 102.26 (high May 5).