7 Aug 2013
USD/JPY consolidating above Tuesday’s lows after sharp decline
FXstreet.com (Barcelona) - The USD/JPY cross continued to falter short-term on Tuesday but finished off the lows. If recent lows give way, the target range of 95.88 – 96.57 will likely come into play.
Yen strength rather than Dollar weakness likely to blame for USD/JPY downside
On Tuesday, we saw a very slow day for economic data in the US and Japan. The most notable headline dame in the form of some more “tapering” talk out of Federal Reserve leaders which, in theory, should have boosted the greenback and the USD/JPY. The theory didn’t hold up, though, as the USD/JPY tumbled early in the US session and churned sideways just off the lows for most of the rest of the session.
Wednesday brings another fairly quiet economic news cycle for the two countries – although traders will be monitoring how the US 10-year Treasury Note auction goes at around 17:00 GMT.
USD/JPY technical outlook
Technicians are calling for continued downside to the 95.88 – 96.57 target range eventually, but acknowledge the possibility of a short-term corrective bounce in the USD/JPY. First support, however, comes in at last Wednesday’s low of 97.58. Resistance for USD/JPY comes in at Tuesday’s peak of 99.58 and is followed by Friday’s high of 99.94.
Yen strength rather than Dollar weakness likely to blame for USD/JPY downside
On Tuesday, we saw a very slow day for economic data in the US and Japan. The most notable headline dame in the form of some more “tapering” talk out of Federal Reserve leaders which, in theory, should have boosted the greenback and the USD/JPY. The theory didn’t hold up, though, as the USD/JPY tumbled early in the US session and churned sideways just off the lows for most of the rest of the session.
Wednesday brings another fairly quiet economic news cycle for the two countries – although traders will be monitoring how the US 10-year Treasury Note auction goes at around 17:00 GMT.
USD/JPY technical outlook
Technicians are calling for continued downside to the 95.88 – 96.57 target range eventually, but acknowledge the possibility of a short-term corrective bounce in the USD/JPY. First support, however, comes in at last Wednesday’s low of 97.58. Resistance for USD/JPY comes in at Tuesday’s peak of 99.58 and is followed by Friday’s high of 99.94.