11 Jul 2013
USD/JPY oscillating below resistance
FXstreet.com (London) - USD/JPY rallied in the late Asian shift when handing over to European markets.
USD/JPY is still down 0.3% since the Asian open with a low of 98.24. The pair has been trying to break resistance at 99.50 but has so far been offered on attempts. Overnight, the BoJ left rates on hold but a statement explained the economy is recovering modestly. The dollar is also suffering since the FOMC minutes and without much in the way of clarity around timings of tapering, overall the statements offered a less hawkish beat and action/policy depending on US economic data.
USD/JPY has failed at the 78.6% retracement at 101.60 and has sold off to the base of the cloud circa 98.15. This move meant the pair has dropped out of the rising wedge pattern, confirming the bearishness around the formation. Further risks to the downside come into play with closes below 98.55 and 98.15. However, there are oversold signals on momentum indicators and the range is among key support 96.80 and 99.95, a resistance area and psychological level. The top of the cloud lies at 100.55 and the 78.6% Fibonacci retracement at 101.60.
USD/JPY is still down 0.3% since the Asian open with a low of 98.24. The pair has been trying to break resistance at 99.50 but has so far been offered on attempts. Overnight, the BoJ left rates on hold but a statement explained the economy is recovering modestly. The dollar is also suffering since the FOMC minutes and without much in the way of clarity around timings of tapering, overall the statements offered a less hawkish beat and action/policy depending on US economic data.
USD/JPY has failed at the 78.6% retracement at 101.60 and has sold off to the base of the cloud circa 98.15. This move meant the pair has dropped out of the rising wedge pattern, confirming the bearishness around the formation. Further risks to the downside come into play with closes below 98.55 and 98.15. However, there are oversold signals on momentum indicators and the range is among key support 96.80 and 99.95, a resistance area and psychological level. The top of the cloud lies at 100.55 and the 78.6% Fibonacci retracement at 101.60.