25 Jul 2013
USD/JPY slipping Thursday after a bounce on Wednesday; major resistance looms
FXstreet.com (Barcelona) - The USD/JPY pulling back after the release of Japanese data early Thursday. It is working its way through a short-term upside correction with major resistance looming overhead.
USD/JPY failing to take out any resistance levels despite better US data Wednesday
Traders reacted to better housing and manufacturing data from the US Wednesday by pushing the USD/JPY higher – indicative of short-term confidence in the US economy. The rally fell short of taking out Friday’s high of 100.86, though.
Early Thursday, traders had a chance to digest foreign investment flow data from Japan. The numbers came out lighter than expected for both bonds and stocks. While the initial reaction was for USD/JPY to rally, sellers quickly took back over and pressured the cross back to the downside.
USD/JPY seeing oversold bounce, but headed lower soon according to technicians
Despite a bullish long-term outlook for USD/JPY, some technicians are calling for a move down to 92.53 before the macro bull trend in the cross resumes. Shorter-term support for USD/JPY comes in at Tuesday’s low of 99.09 followed by important short-term support at the 7/16 pivot low of 98.88. A break of that level will likely lead to an acceleration of the downside action. Resistance for USD/JPY comes in at last Friday’s peak of 100.86 and is backed up by key “correction resistance” at the 7/8 intraday high at 101.53.
USD/JPY failing to take out any resistance levels despite better US data Wednesday
Traders reacted to better housing and manufacturing data from the US Wednesday by pushing the USD/JPY higher – indicative of short-term confidence in the US economy. The rally fell short of taking out Friday’s high of 100.86, though.
Early Thursday, traders had a chance to digest foreign investment flow data from Japan. The numbers came out lighter than expected for both bonds and stocks. While the initial reaction was for USD/JPY to rally, sellers quickly took back over and pressured the cross back to the downside.
USD/JPY seeing oversold bounce, but headed lower soon according to technicians
Despite a bullish long-term outlook for USD/JPY, some technicians are calling for a move down to 92.53 before the macro bull trend in the cross resumes. Shorter-term support for USD/JPY comes in at Tuesday’s low of 99.09 followed by important short-term support at the 7/16 pivot low of 98.88. A break of that level will likely lead to an acceleration of the downside action. Resistance for USD/JPY comes in at last Friday’s peak of 100.86 and is backed up by key “correction resistance” at the 7/8 intraday high at 101.53.