24 Jul 2014
USD/JPY capped by 101.60 so far
FXStreet (Edinburgh) - The Japanese yen is depreciating against the greenback on Thursday, lifting the USD/JPY to levels below 101.60 so far.
USD/JPY stronger on Japanese data
Spot saw its demand renewed after trade balance figures in Japan disappointed investors in June, posting a deficit of ¥822.2 billion, and the manufacturing PMI tracked by Nomura/JMMA came in lower at 50.8 for the present moth vs. June’s 51.5. The pair is thus giving extra oxygen to the recent bounce off the vicinity of 101.00 the figure in the last weeks, although the impetus seems to have found strong resistance near 101.60. According to Quek Ser Leang, Market Strategist at UOB Group, “In line with expectations, USD dipped to a low of 101.30/35 before rebounding. However, momentum indicators are still patchy and a sustained up-move is unlikely. The current rebound is expected to stay above 101.30 for a move towards 101.65/70”.
USD/JPY levels to consider
The pair is now advancing 0.08% at 101.56 facing the next resistance at 101.79 (high Jul.16) ahead of 101.81 (61.8% of 102.27-101.06) and finally 101.87 (high Jul.9). On the downside, a break below 101.09 (low Jul.18) would expose 101.06 (low Jul.10) and then 101.00 (psychological level).
USD/JPY stronger on Japanese data
Spot saw its demand renewed after trade balance figures in Japan disappointed investors in June, posting a deficit of ¥822.2 billion, and the manufacturing PMI tracked by Nomura/JMMA came in lower at 50.8 for the present moth vs. June’s 51.5. The pair is thus giving extra oxygen to the recent bounce off the vicinity of 101.00 the figure in the last weeks, although the impetus seems to have found strong resistance near 101.60. According to Quek Ser Leang, Market Strategist at UOB Group, “In line with expectations, USD dipped to a low of 101.30/35 before rebounding. However, momentum indicators are still patchy and a sustained up-move is unlikely. The current rebound is expected to stay above 101.30 for a move towards 101.65/70”.
USD/JPY levels to consider
The pair is now advancing 0.08% at 101.56 facing the next resistance at 101.79 (high Jul.16) ahead of 101.81 (61.8% of 102.27-101.06) and finally 101.87 (high Jul.9). On the downside, a break below 101.09 (low Jul.18) would expose 101.06 (low Jul.10) and then 101.00 (psychological level).