USD/JPY amidst range trading; cross awaits for directional move

FXstreet.com (Athens) – The USD/JPY continues to move amidst a tight trading range ahead of crucial Friday’s NFP data as well as of the looming ECB’s conference.

USD/JPY sits on the fence ahead of US 3rd quarter GDP, NFP data

Another range-bound trading day for the USD/JPY, which is moving near 98.60 area at the time of writing. While the Nikkei soared today – many thanks to the Toyota earnings and a 2-week low of the Shibor benchmark rate – the USD/JPY seems to have been trapped at similar levels to where it was throughout the October 2013. Briefly, the pair failed to trend higher than 98.85, rejecting the 17th October high as of 99.00 and now it looks like there is no any strong enough catalyst (at the time being), to help the cross break of its range. Market participants should by far take upon deep consideration the upcoming US data releases (NFP, 3rd quarter GDP), alongside with the looming ECB’s conference decision.

Technical Aspects

Taken for granted that the BOJ is still preoccupied with attempting to achieve its multi-year inflation target and we are ahead of NFP’s, ECB’s conference the cross might manage to break of its range. As long as the pair holds the 200-hourly SMA support as of (98.18), but mostly the 200-daily SMA (97.65), will sustain its upwards momentum but to move further on the upper level, the pair should overcome the handle as of 99.01 (daily high as of the 17th October).

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