30 Jul 2013
Oversold USD/JPY boosted by fresh batch of Japanese data
FXstreet.com (Barcelona) - The USD/JPY approached Japanese unemployment, household spending and industrial production data in an oversold condition and awaiting further directional guidance.
Japanese data sends overall weak message – boosting USD/JPY
Economic data out of Japan late Monday night came in mixed with household spending and industrial production coming in below estimates while Japanese unemployment came in slightly better-than-expected. The initial reaction after the data were released was to sell the Yen – forcing the USD/JPY from 97.89 to 98.44 at just after midnight GMT.
USD/JPY technical outlook
Technicians are still calling for a move down to 92.53 before the macro bull trend in the cross resumes. But, they note that the cross is approaching oversold readings according to several indicators. Under these conditions, they say the play in the USD/JPY is to sell any oversold rallies that may occur. Shorter-term support for USD/JPY comes in at the Fibonacci projection of 97.64. Below that level comes the key “bulls’ last stand” or “correction support” at 97.30. Resistance for USD/JPY comes in at the Fibonacci retracement (of the most recent short-term down move) levels of 98.30 and 98.70.
Japanese data sends overall weak message – boosting USD/JPY
Economic data out of Japan late Monday night came in mixed with household spending and industrial production coming in below estimates while Japanese unemployment came in slightly better-than-expected. The initial reaction after the data were released was to sell the Yen – forcing the USD/JPY from 97.89 to 98.44 at just after midnight GMT.
USD/JPY technical outlook
Technicians are still calling for a move down to 92.53 before the macro bull trend in the cross resumes. But, they note that the cross is approaching oversold readings according to several indicators. Under these conditions, they say the play in the USD/JPY is to sell any oversold rallies that may occur. Shorter-term support for USD/JPY comes in at the Fibonacci projection of 97.64. Below that level comes the key “bulls’ last stand” or “correction support” at 97.30. Resistance for USD/JPY comes in at the Fibonacci retracement (of the most recent short-term down move) levels of 98.30 and 98.70.