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20 Aug 2013
USD/JPY edging higher amidst upcoming event risks
FXstreet.com (New York) - The USD/JPY foreign exchange rate has been treading a linear path Tuesday morning, unable to mount any prolonged advance thus far during Asian trading.
At this juncture, the USD/JPY is now navigating the region of 97.64 (200-day SMA), en route to a tepid advance of +0.08% above its opening during Asian trading, Briefing the technicals, the USD/JPY advance will remain capped by resistances at 97.71 (55-day MA), onto 98.07 (August 19 high). Conversely, the pair remains fortified by support at 97.41 (August 19 low), ahead of 97.06 (August 16 low).
USD/JPY strategic bias
According to Jim Langlands at FX Charts, “Until the event risk, starting tomorrow with the FOMC Minutes, I think we are probably in for more of the same and that 97/98 should cover it. So once again it will be a day of watching the Nikkei, which yesterday, finished up 0.80% at 13,758 and as long as support at 13500 underpins it, then so should the dollar hold up. On the topside, if we do head above today’s 98.12 high, the dollar would run into sellers at 98.75 (daily cloud base) and then at the 200-day MA at 98.80, and combined, should prove pretty strong resistance. A break of this though would see a run towards the top of the triangle resistance at around 99.50, which again would be strong, and I don’t think we are going there for the next session or two.”
At this juncture, the USD/JPY is now navigating the region of 97.64 (200-day SMA), en route to a tepid advance of +0.08% above its opening during Asian trading, Briefing the technicals, the USD/JPY advance will remain capped by resistances at 97.71 (55-day MA), onto 98.07 (August 19 high). Conversely, the pair remains fortified by support at 97.41 (August 19 low), ahead of 97.06 (August 16 low).
USD/JPY strategic bias
According to Jim Langlands at FX Charts, “Until the event risk, starting tomorrow with the FOMC Minutes, I think we are probably in for more of the same and that 97/98 should cover it. So once again it will be a day of watching the Nikkei, which yesterday, finished up 0.80% at 13,758 and as long as support at 13500 underpins it, then so should the dollar hold up. On the topside, if we do head above today’s 98.12 high, the dollar would run into sellers at 98.75 (daily cloud base) and then at the 200-day MA at 98.80, and combined, should prove pretty strong resistance. A break of this though would see a run towards the top of the triangle resistance at around 99.50, which again would be strong, and I don’t think we are going there for the next session or two.”