4 Nov 2013
USD/JPY slightly upwards but still on a knife edge amidst Tokyo holidays
FXstreet.com (Athens) – The USD/JPY is trading mostly in a tight sidelines mode well above the confluence area of 98.50, but also capped by the 17th October high as of 99.01.
The USD/JPY is on a consolidation mode and market participants should be aware that usually consolidations phases lead to immense, break out moves. While the Japanese calendar is very light the week ahead, there are major Central Banks meetings ((the RBA on Tuesday, the BoE and the ECB on Thursday) and four labor market reports (New Zealand on Tuesday, Australia on Wednesday, Canada and the United States on Friday). These events could provide a major catalyst for the cross; results which would suggest risk-aversion would drag the cross downwards and vice verca.
Technical Aspects on the USD/JPY
The cross remains well above the 200-daily SMA (97.58) and the daily low as of Friday OF THE 1st November (97.80). What’s more, it is still moving slightly above the crucial support of the confluence of the 98.20-98.50 area, where the 10-daily EMA (98.20), 50-daily EMA (98.22) and the 100-daily EMA (98.50), are laying. On the other hand to move on the upper trend level, it should first overcome the 98.65 resistance and then the 17th October high as of 99.01. Emmanuel Ng of OCBC Bank says “that TKY is away for a long weekend today but the USD/JPY may attempt to push gingerly higher in the current dollar environment. The next key psychological resistance is expected at 99.00. Meanwhile supportive JPY crosses stemming from positive risk appetite levels may also lend the USD a hand against the yen.”
The USD/JPY is on a consolidation mode and market participants should be aware that usually consolidations phases lead to immense, break out moves. While the Japanese calendar is very light the week ahead, there are major Central Banks meetings ((the RBA on Tuesday, the BoE and the ECB on Thursday) and four labor market reports (New Zealand on Tuesday, Australia on Wednesday, Canada and the United States on Friday). These events could provide a major catalyst for the cross; results which would suggest risk-aversion would drag the cross downwards and vice verca.
Technical Aspects on the USD/JPY
The cross remains well above the 200-daily SMA (97.58) and the daily low as of Friday OF THE 1st November (97.80). What’s more, it is still moving slightly above the crucial support of the confluence of the 98.20-98.50 area, where the 10-daily EMA (98.20), 50-daily EMA (98.22) and the 100-daily EMA (98.50), are laying. On the other hand to move on the upper trend level, it should first overcome the 98.65 resistance and then the 17th October high as of 99.01. Emmanuel Ng of OCBC Bank says “that TKY is away for a long weekend today but the USD/JPY may attempt to push gingerly higher in the current dollar environment. The next key psychological resistance is expected at 99.00. Meanwhile supportive JPY crosses stemming from positive risk appetite levels may also lend the USD a hand against the yen.”