10 Dec 2013
USD/JPY testing 103.00
FXstreet.com (Edinburgh) - The USD/JPY is now intensifying the intraday decline, putting the key support at 103.00 to the test.
USD/JPY capped at 103.40
Despite today’s pullback, the pair is advancing for the seventh consecutive week so far, in a context where risk appetite continues to encourage more JPY selling. Regarding the data front, advanced Japanese Machine Tool Orders expanded at an annual pace of 15.4% during November, almost doubling October’s print at 8.4% and the Consumer Confidence index improved to 42.5 during the same period. Jane Foley, Strategist at Rabobank, suggested, “The latest CFTC report shows that speculators were more short yen last week than at any point since July 2007. The May high at USD/JPY103.74 is likely to offer decent resistance in the near-term. A failure to break higher could spark short-covering and a step backwards for USD/JPY”.
USD/JPY key levels
At the moment the pair is losing 0.31% at 102.96 with the next support at 102.45 (low Dec.9) followed by 102.28 (Tenkan-Sen line) and finally 101.63 (low Dec.6). On the upside, a break above 103.23 (high Dec.9) would target 103.38 (high Dec.3) and then 103.57 (high May 23).
USD/JPY capped at 103.40
Despite today’s pullback, the pair is advancing for the seventh consecutive week so far, in a context where risk appetite continues to encourage more JPY selling. Regarding the data front, advanced Japanese Machine Tool Orders expanded at an annual pace of 15.4% during November, almost doubling October’s print at 8.4% and the Consumer Confidence index improved to 42.5 during the same period. Jane Foley, Strategist at Rabobank, suggested, “The latest CFTC report shows that speculators were more short yen last week than at any point since July 2007. The May high at USD/JPY103.74 is likely to offer decent resistance in the near-term. A failure to break higher could spark short-covering and a step backwards for USD/JPY”.
USD/JPY key levels
At the moment the pair is losing 0.31% at 102.96 with the next support at 102.45 (low Dec.9) followed by 102.28 (Tenkan-Sen line) and finally 101.63 (low Dec.6). On the upside, a break above 103.23 (high Dec.9) would target 103.38 (high Dec.3) and then 103.57 (high May 23).