24 Oct 2013
USD/JPY flirts with its daily-200 SMA as dollar looks for floor
FXstreet.com (Athens) – The USD/JPY is trading at a very congested range ahead of the US jobless claims data, just a few pips above the daily-200 SMA (97.29).
USD/JPY almost muted ahead of US opening, US jobless claims data
The USD/JPY is trading indeed at a very confined range ahead of the US labor data. Nevertheless, the US labor data have been forecasted weaker, the data has been impacted by the recent government shutdown so might not going to give a decent read of the underlying health of the US economy and the greenback likely to shrug off the release. Furthermore, Japanese Amari mentioned in news wires that “consumption growth seen slowing - been talking about this for weeks - without wage growth,” i.e. 'Abenomics' will fail in the end without wage growth. Elaborating on, it is plausible that without wage growth, the higher prices will hurt even more consumption, leading to what BoJ is afraid mostly of; the Japanese yen depreciation.
Technical Aspects on USD/JPY
Karen Jones Head Technical Analyst of Commerzbank, mentions that the USD/JPY “has dived lower to reach the 200 day ma at 97.32, this guards the current October low at 96.55 and the six month support line at 95.90. The market has been contained in a large contracting range for the past 6 months and currently we have no real indication that the market is ready to break down through 95.88, but there is scope to test this level.”
USD/JPY almost muted ahead of US opening, US jobless claims data
The USD/JPY is trading indeed at a very confined range ahead of the US labor data. Nevertheless, the US labor data have been forecasted weaker, the data has been impacted by the recent government shutdown so might not going to give a decent read of the underlying health of the US economy and the greenback likely to shrug off the release. Furthermore, Japanese Amari mentioned in news wires that “consumption growth seen slowing - been talking about this for weeks - without wage growth,” i.e. 'Abenomics' will fail in the end without wage growth. Elaborating on, it is plausible that without wage growth, the higher prices will hurt even more consumption, leading to what BoJ is afraid mostly of; the Japanese yen depreciation.
Technical Aspects on USD/JPY
Karen Jones Head Technical Analyst of Commerzbank, mentions that the USD/JPY “has dived lower to reach the 200 day ma at 97.32, this guards the current October low at 96.55 and the six month support line at 95.90. The market has been contained in a large contracting range for the past 6 months and currently we have no real indication that the market is ready to break down through 95.88, but there is scope to test this level.”