16 Oct 2013
USD/JPY finds support at 98.30
FXstreet.com (Edinburgh) -The USD is losing the grip on Wednesday, dragging the USD/JPY from overnight peaks near 98.70 to the current area around the boundaries of 98.30.
USD/JPY focus on US events
The vulnerability around the pair would increase in the upcoming critical hours, as the solution for the US federal paralysis and the debt ceiling remains elusive. Politicians continue to negotiate an eleventh-hour deal with hopes of the debt ceiling to be raised until February. “Should the day end without a US fiscal deal, this could translate into USD buying later in the day. However, so far, the favoured way of hedging against the risk of a US debt default in the currency market appears to have been JPY buying”, observed Christin Tuxen, Analyst at Danske Bank.
USD/JPY levels to consider
The pair is now advancing 0.14% at 98.33 with the next resistance at 98.71 (high Oct.15) followed by 98.73 (high Oct.1) and then 99.04 (high Sep.27). On the flip side, a breakdown of 98.14 (low Oct.16) would aim for 97.99 (low Oct.15) and finally 97.91 (low Oct.11).
USD/JPY focus on US events
The vulnerability around the pair would increase in the upcoming critical hours, as the solution for the US federal paralysis and the debt ceiling remains elusive. Politicians continue to negotiate an eleventh-hour deal with hopes of the debt ceiling to be raised until February. “Should the day end without a US fiscal deal, this could translate into USD buying later in the day. However, so far, the favoured way of hedging against the risk of a US debt default in the currency market appears to have been JPY buying”, observed Christin Tuxen, Analyst at Danske Bank.
USD/JPY levels to consider
The pair is now advancing 0.14% at 98.33 with the next resistance at 98.71 (high Oct.15) followed by 98.73 (high Oct.1) and then 99.04 (high Sep.27). On the flip side, a breakdown of 98.14 (low Oct.16) would aim for 97.99 (low Oct.15) and finally 97.91 (low Oct.11).