26 Jul 2013
USD/JPY in lows around 98.50
FXstreet.com (Edinburgh) -The USD continues to trade in the defensive ground on Friday, extending yesterday’s soft tone and dragging USD/JPY to weekly lows around 98.50.
USD/JPY hinges on the Fed
Higher than expected consumer prices in Japan for the month of July, with the Core CPI contracting 0.2% vs. -0.4% previous, are giving extra credit to the PM S.Abe in its battle to eradicate the entrenched deflation. “That should help limit the downside for USD/JPY – although the outlook for monetary policy in the US is still key and the bigger driver at present”, suggested Derek Halpenny, European Head of Global Markets Research at BTMU.
USD/JPY critical levels
At the moment the pair is down 0.71% at 98.57 with the immediate support at 98.20 (low Jul.11) followed by 97.64 (50% of 93.75-101.54) and then 97.57 (cloud base). On the upside, a break above 99.40 (high Jul.26) would expose 100.45 (highs Jul.24/25) and finally 101.05 (high Jul.22).
USD/JPY hinges on the Fed
Higher than expected consumer prices in Japan for the month of July, with the Core CPI contracting 0.2% vs. -0.4% previous, are giving extra credit to the PM S.Abe in its battle to eradicate the entrenched deflation. “That should help limit the downside for USD/JPY – although the outlook for monetary policy in the US is still key and the bigger driver at present”, suggested Derek Halpenny, European Head of Global Markets Research at BTMU.
USD/JPY critical levels
At the moment the pair is down 0.71% at 98.57 with the immediate support at 98.20 (low Jul.11) followed by 97.64 (50% of 93.75-101.54) and then 97.57 (cloud base). On the upside, a break above 99.40 (high Jul.26) would expose 100.45 (highs Jul.24/25) and finally 101.05 (high Jul.22).