21 Aug 2013
USD/JPY approaching key 97.50 region as offers mount
FXstreet.com (New York) - The USD/JPY foreign exchange rate traded higher Wednesday morning, shaking off yesterdays dip below the 97.00 region and recovering nicely thus far during Asian trading.
Recently, BoJ Governor Kuroda noted he would not hesitate to adjust policy if downside risks from sales tax hike or overseas economies increase. While this may seem premature, he stated that he hoped Japanese government takes firm steps towards fiscal discipline, though that he doesn’t expect the economy to slow if sales tax raised as scheduled.
At this juncture, the USD/JPY is now navigating the region of 97.48 (close to the 97.50 region where bank sources reported offers), en route to a healthy advance of +0.18% above its opening during Asian trading, Briefing the technicals, the USD/JPY advance will remain capped by resistances at 97.53 (200-day SMA), onto 97.72 (August 16 high) and 97.84 (August 20 high).
USD/JPY strategic bias
According to Jim Langlands at FX Charts, “On the topside, there are now sellers lined up at various minor levels between 97.50 and 98.00. Above yesterday’s 98.12 high would head into sellers at 98.75 (daily cloud base) followed by the 200-day MA at 98.80, and combined, should prove pretty strong resistance. The top of the triangle lies above here, currently at 99.05, but looks pretty safe. However, for today use 96.70/97.70 as a guide with a mild bias towards the downside and with a close eye, as ever, on the Nikkei, which looks headed towards 13,000 and may drag the dollar lower”
Recently, BoJ Governor Kuroda noted he would not hesitate to adjust policy if downside risks from sales tax hike or overseas economies increase. While this may seem premature, he stated that he hoped Japanese government takes firm steps towards fiscal discipline, though that he doesn’t expect the economy to slow if sales tax raised as scheduled.
At this juncture, the USD/JPY is now navigating the region of 97.48 (close to the 97.50 region where bank sources reported offers), en route to a healthy advance of +0.18% above its opening during Asian trading, Briefing the technicals, the USD/JPY advance will remain capped by resistances at 97.53 (200-day SMA), onto 97.72 (August 16 high) and 97.84 (August 20 high).
USD/JPY strategic bias
According to Jim Langlands at FX Charts, “On the topside, there are now sellers lined up at various minor levels between 97.50 and 98.00. Above yesterday’s 98.12 high would head into sellers at 98.75 (daily cloud base) followed by the 200-day MA at 98.80, and combined, should prove pretty strong resistance. The top of the triangle lies above here, currently at 99.05, but looks pretty safe. However, for today use 96.70/97.70 as a guide with a mild bias towards the downside and with a close eye, as ever, on the Nikkei, which looks headed towards 13,000 and may drag the dollar lower”