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11 Sep 2013
USD/JPY toggling critical resistance at 100.37 ahead of Obama address
FXstreet.com (Barcelona) - USD/JPY Traders absorbed decent Japanese manufacturing and corporate goods pricing data early Wednesday and awaited Obama’s speech, US data and Congress’ vote on military action later on Wednesday.
Will the “safety trade” or “risk trade” dominate Wednesday?
While the USD/JPY sits right at key resistance and in an overbought condition, traders contemplate whether a turn higher in the greenback and/or in the Yen will occur as Obama speaks, Congress votes and some minor data flows across the wires.
Technical outlook for USDJPY
Technicians say the USD/JPY actually closed ever-so-slightly above “correction resistance” at 100.37 Tuesday. They note that one more up day as a follow through would help lock-in the breakout. The cross is overbought, though, so long side entries right here may be less-than-ideal. A breakout above resistance should mean there’s room to run up to 101.525 while a failure to follow through on the breakout could lead to a precipitous fall down to below 93.
Will the “safety trade” or “risk trade” dominate Wednesday?
While the USD/JPY sits right at key resistance and in an overbought condition, traders contemplate whether a turn higher in the greenback and/or in the Yen will occur as Obama speaks, Congress votes and some minor data flows across the wires.
Technical outlook for USDJPY
Technicians say the USD/JPY actually closed ever-so-slightly above “correction resistance” at 100.37 Tuesday. They note that one more up day as a follow through would help lock-in the breakout. The cross is overbought, though, so long side entries right here may be less-than-ideal. A breakout above resistance should mean there’s room to run up to 101.525 while a failure to follow through on the breakout could lead to a precipitous fall down to below 93.