17 Jan 2014
USD/JPY playing with fire around 104.20
FXstreet.com (Bali) - USD/JPY continues to trade near a sensitive support area between 104.00/104.20 at the Tokyo open, with the Nikkei 225 opening down -0.33% after Thursday's bearish outside day.
US stocks/Treasury yields weigh
During Thursday, failure to re-take 105.00 led to hours of consolidation in late Asia/European morning, yet selling in the US stocks/10-yr Treasury yields forced a retreat in the pair, testing support at the 104.20 vicinity, with further bids ahead of 104.00, where the daily kijun stands. Market sources continue to speculate on Japanese importers' interest to sell Yens as the currency appreciates.
USD/JPY technicals
Technically, "it won’t be a surprise to see a downward continuation in yen crosses" notes Valeria Bednarik, Chief Analyst at FXStreet. In the short term, "it takes a break below 103.70 to confirm a downward acceleration and an approach to 103.00 zone", Valeria said.
US stocks/Treasury yields weigh
During Thursday, failure to re-take 105.00 led to hours of consolidation in late Asia/European morning, yet selling in the US stocks/10-yr Treasury yields forced a retreat in the pair, testing support at the 104.20 vicinity, with further bids ahead of 104.00, where the daily kijun stands. Market sources continue to speculate on Japanese importers' interest to sell Yens as the currency appreciates.
USD/JPY technicals
Technically, "it won’t be a surprise to see a downward continuation in yen crosses" notes Valeria Bednarik, Chief Analyst at FXStreet. In the short term, "it takes a break below 103.70 to confirm a downward acceleration and an approach to 103.00 zone", Valeria said.