11 Jun 2013
USD/JPY inching sideways below 99.00 ahead of BoJ Meeting
FXstreet.com (Barcelona) - After closing the day 95 pips higher at 98.74, the USD/JPY is consolidating in a narrow range ahead of the Bank of Japan Monetary Policy Statement due out a bit later in the Asia session.
Val Bednarik of FXStreet.com noted technical developments on the short term time frame charts remain constructive which could
help lead to additional gains as we near closer to the BoJ Statement. “Technical readings remain in positive territory while moving averages head south, which suggest price needs to take one more step before resuming the upside: 99.50 area is now key, as the pair presents several intraday highs and lows around the level, along with 200 SMA. Once above the resistance, the pair will face selling interest in the 100.00 level.”
The FXStreet.com Trend Index remains in slightly bearish set up on the 1 hour chart, while the ob/os read neutral. However, the RSI (14) is in bullish set up on the 1 hour chart, consolidating just above the 60 level and maintaining the bullish zone between 40 and 80. Given the fact trending and momentum indicators are in disagreement on the 1 hour chart, the pair may be due for some additional consolidation before the next major move. Initial resistance sits at 99.18 (the 9dma), while first support is at 98.41 (the 100dma on 1 hour chart).
Val Bednarik of FXStreet.com noted technical developments on the short term time frame charts remain constructive which could
help lead to additional gains as we near closer to the BoJ Statement. “Technical readings remain in positive territory while moving averages head south, which suggest price needs to take one more step before resuming the upside: 99.50 area is now key, as the pair presents several intraday highs and lows around the level, along with 200 SMA. Once above the resistance, the pair will face selling interest in the 100.00 level.”
The FXStreet.com Trend Index remains in slightly bearish set up on the 1 hour chart, while the ob/os read neutral. However, the RSI (14) is in bullish set up on the 1 hour chart, consolidating just above the 60 level and maintaining the bullish zone between 40 and 80. Given the fact trending and momentum indicators are in disagreement on the 1 hour chart, the pair may be due for some additional consolidation before the next major move. Initial resistance sits at 99.18 (the 9dma), while first support is at 98.41 (the 100dma on 1 hour chart).