30 Jan 2014
USD/JPY capped by 102.80
FXstreet.com (Edinburgh) - The bull run in the USD/JPY seems to have run out of steam in the vicinity of 102.80, coinciding with a downbeat reading from the US Pending Home Sales.
USD/JPY rebounded from 102.20
The pair recovered the ground lost overnight, advancing to the boundaries of 102.80 following the bullish momentum in the USD. Positive (not disappointing) US GDP during the fourth quarter was collaborating with the upside. Rob Carnell, Analyst at ING, commented, “Overall, this is a strong set of data, especially when you take into account the government shutdown, though the GDP price deflators were on the weak side – which may worry some. This should not be enough to detract the Fed from what looks like it will be another $10bn taper at their March FOMC meeting taking monthly QE down to $55bn”.
USD/JPY levels to watch
At the moment the pair is up 0.50% at 102.75 with the next resistance at 103.05 (daily cloud top) ahead of 103.45 (high Jan.29) and then 103.45 (high Jan.29). On the downside, a break below 102.03 (low Jan.30) would open the door to 101.85 (low Jan.29) and finally 101.77 (38.2% of 95.81-105.45).
USD/JPY rebounded from 102.20
The pair recovered the ground lost overnight, advancing to the boundaries of 102.80 following the bullish momentum in the USD. Positive (not disappointing) US GDP during the fourth quarter was collaborating with the upside. Rob Carnell, Analyst at ING, commented, “Overall, this is a strong set of data, especially when you take into account the government shutdown, though the GDP price deflators were on the weak side – which may worry some. This should not be enough to detract the Fed from what looks like it will be another $10bn taper at their March FOMC meeting taking monthly QE down to $55bn”.
USD/JPY levels to watch
At the moment the pair is up 0.50% at 102.75 with the next resistance at 103.05 (daily cloud top) ahead of 103.45 (high Jan.29) and then 103.45 (high Jan.29). On the downside, a break below 102.03 (low Jan.30) would open the door to 101.85 (low Jan.29) and finally 101.77 (38.2% of 95.81-105.45).