27 Dec 2013
USD/JPY lifting again as Japanese data flow fails to induce selling pressure; ST target 105.50
FXstreet.com (Barcelona) - The USD/JPY opened up higher Tuesday on some renewed Yen weakness and the general risk-on attitude that is permeating global financial markets recently.
USD/JPY traders keep up trend intact after Japanese data came out sluggish
There is no US data due out Friday. However, there was a long list of Japanese data points that just came out, including:
• Japanese Manufacturing PMI came out and showed a modest m/m gain – Yen bullish
• Japanese CPI came out and also showed a modest m/m gain – Yen neutral
• Japanese Household Spending came out much lower than expected – Yen bearish
• Japanese Unemployment came out slightly higher than expected – Yen bearish
• Japanese Industrial Production came out lower than expected – Yen bearish
• Japanese Retail Sales came out slightly better than expected – Yen bullish
The net effect of the data today was that the Yen remains under pressure – at least versus the greenback.
Technical outlook for USD/JPY
Technicians now say the USD/JPY is clearly in the midst of a third wave move higher that should take the cross up to points north of 106. Prior to that level being tested, they say there is a good chance that some profit-taking comes into play at around 105.50. The first two support levels for the cross come in at 103.73 and 103.54 – the previous resistance levels for USD/JPY.
USD/JPY traders keep up trend intact after Japanese data came out sluggish
There is no US data due out Friday. However, there was a long list of Japanese data points that just came out, including:
• Japanese Manufacturing PMI came out and showed a modest m/m gain – Yen bullish
• Japanese CPI came out and also showed a modest m/m gain – Yen neutral
• Japanese Household Spending came out much lower than expected – Yen bearish
• Japanese Unemployment came out slightly higher than expected – Yen bearish
• Japanese Industrial Production came out lower than expected – Yen bearish
• Japanese Retail Sales came out slightly better than expected – Yen bullish
The net effect of the data today was that the Yen remains under pressure – at least versus the greenback.
Technical outlook for USD/JPY
Technicians now say the USD/JPY is clearly in the midst of a third wave move higher that should take the cross up to points north of 106. Prior to that level being tested, they say there is a good chance that some profit-taking comes into play at around 105.50. The first two support levels for the cross come in at 103.73 and 103.54 – the previous resistance levels for USD/JPY.