26 Sep 2013
USD/JPY a mixed bag; 99.00 a challenge
FXstreet.com (London) - USD/JPY had managed a breach of the 99.00 handle, on three attempts but has failed to offer any conviction and subsequent of less than impressive Us data the pair are struggling to hang in there.
TD Securities explained that fresh reports that the Abe government is considering a corporate tax cut in the near future to help balance the much telegraphed sales tax increase on the horizon saw the JPY sell off sharply across the board early in the overnight session. “The Nikkei was boosted by over 1% on the news, and the index’s strong, positive correlation with USD/JPY is likely a strong force behind the pressure on the currency. But the broadly consolidative tone of markets has seen most of that move retrace in recent hours. Reports of new government policies have grown very common now and we may need to see a hard announcement before we see USD/JPY levels outside of the range of the past two months (97.50/100)”. From the calendar, US GDP came in slightly lower than anticipated by markets, at 2.5% vs 2.6% while initial jobless claims improved in terms of the consensus at 305K against 325K expected.
USD/JPY Levels
The 20 DMA is 99.20, the 50 DMA is 98.58 and the 200 DMA is 96.25. RSI (14) 57.12. Supports are ascending from 97.98, 98.19 ,98.27 and 98.51. spot is currently 98.94 while resistances are 99.18, 99.36, 99.67 and 99.99.
TD Securities explained that fresh reports that the Abe government is considering a corporate tax cut in the near future to help balance the much telegraphed sales tax increase on the horizon saw the JPY sell off sharply across the board early in the overnight session. “The Nikkei was boosted by over 1% on the news, and the index’s strong, positive correlation with USD/JPY is likely a strong force behind the pressure on the currency. But the broadly consolidative tone of markets has seen most of that move retrace in recent hours. Reports of new government policies have grown very common now and we may need to see a hard announcement before we see USD/JPY levels outside of the range of the past two months (97.50/100)”. From the calendar, US GDP came in slightly lower than anticipated by markets, at 2.5% vs 2.6% while initial jobless claims improved in terms of the consensus at 305K against 325K expected.
USD/JPY Levels
The 20 DMA is 99.20, the 50 DMA is 98.58 and the 200 DMA is 96.25. RSI (14) 57.12. Supports are ascending from 97.98, 98.19 ,98.27 and 98.51. spot is currently 98.94 while resistances are 99.18, 99.36, 99.67 and 99.99.