26 Jul 2013
USD/JPY fallen out of triangle sub 99.00
FXstreet.com (Barcelona) - USD/JPY triggered some sell stops when breaking down through the support line on a broad based dollar sell off in this markets.
The theme of the markets is the dollar due to a WSJ Hilsenrath article that suggested the Fed will stick to a dovish script next week, possibly lowering the unemployment threshold for raising rates to below 6.5%. This was followed by news that a number of US Senate Democrats have circulated a letter in support of Janet Yellen, a noted dove, to replace Fed Chairman Bernanke when his term ends early next year.
USD/JPY now eyes mid July lows, 98.25
USD/JPY has sold off and broken down out of the triangular consolidation and narrowing Bollinger bands, sub 99.00. The pair has moved to the top of its cloud support at 98.75 and eyes mid July lows of 98.25 in thinner, month end, and summer holiday-time markets. Rallies could be capped on the topside by its 100.80 resistance line and the 101.60/78.6% retracement.
The theme of the markets is the dollar due to a WSJ Hilsenrath article that suggested the Fed will stick to a dovish script next week, possibly lowering the unemployment threshold for raising rates to below 6.5%. This was followed by news that a number of US Senate Democrats have circulated a letter in support of Janet Yellen, a noted dove, to replace Fed Chairman Bernanke when his term ends early next year.
USD/JPY now eyes mid July lows, 98.25
USD/JPY has sold off and broken down out of the triangular consolidation and narrowing Bollinger bands, sub 99.00. The pair has moved to the top of its cloud support at 98.75 and eyes mid July lows of 98.25 in thinner, month end, and summer holiday-time markets. Rallies could be capped on the topside by its 100.80 resistance line and the 101.60/78.6% retracement.