4 Sep 2013
USD/JPY still capped by 100.00
FXstreet.com (Athens) - The USD/JPY is heading upwards ahead of the BoJ 2-day policy meeting today and despite the backdrop of a supported dollar.
Is the USD/JPY ready to wedge a breakout of the crucial 100.00 resistance level?
The USD/JPY touched earlier a high as of 99.80, but still the resistance of the 100.00 area, remained intact. We are ahead of the BoJ two-day policy meeting and the USD/JPY will probably try to penetrate above the major 100.00 key-level, i.e. the pair might break the resistance on the major congestion pattern has been so far. Major drivers that might lead to such a break could be a continuation of Nikkei225 bullishness and boosting comments on behalf of BoJ. We should also metion that a re-appearing of Syria’s jitters, will boost immensely the Japanese currency, so the pair will move on the downwards side. Hamada from BoJ, said earlier that “says he's not sure if recent improvements in Japanese economic data are for real” and that “1st arrow of Abenomics working well but capital spending is very weak. Room for concern that manufacturing investment not growing”.
Technical outlook on USD/JPY
At the time of writing, the USD/JPY is trading at 99.55, up 0.18%, ‘eyeing’ the crucial resistance of 100.00 level. Tim Riddel, Head of Golbal Market Researsh, in ANZ suggest that “not unsurprisingly, the 100.00 level provides near-term resistance, but as long as dips remain above 98.50 (ideally above 99.10),the prospects of retesting the 103.85 recent highs, will increase”. The FXstreet.com Trend Index shows the pair to be strongly bearish and overbought in the 15 minutes timeframe. Daily pivot point support can be found at 98.81, 98.57, 95.32 and resistance at 99.82, 100.23 and 100.48, respectively.
Is the USD/JPY ready to wedge a breakout of the crucial 100.00 resistance level?
The USD/JPY touched earlier a high as of 99.80, but still the resistance of the 100.00 area, remained intact. We are ahead of the BoJ two-day policy meeting and the USD/JPY will probably try to penetrate above the major 100.00 key-level, i.e. the pair might break the resistance on the major congestion pattern has been so far. Major drivers that might lead to such a break could be a continuation of Nikkei225 bullishness and boosting comments on behalf of BoJ. We should also metion that a re-appearing of Syria’s jitters, will boost immensely the Japanese currency, so the pair will move on the downwards side. Hamada from BoJ, said earlier that “says he's not sure if recent improvements in Japanese economic data are for real” and that “1st arrow of Abenomics working well but capital spending is very weak. Room for concern that manufacturing investment not growing”.
Technical outlook on USD/JPY
At the time of writing, the USD/JPY is trading at 99.55, up 0.18%, ‘eyeing’ the crucial resistance of 100.00 level. Tim Riddel, Head of Golbal Market Researsh, in ANZ suggest that “not unsurprisingly, the 100.00 level provides near-term resistance, but as long as dips remain above 98.50 (ideally above 99.10),the prospects of retesting the 103.85 recent highs, will increase”. The FXstreet.com Trend Index shows the pair to be strongly bearish and overbought in the 15 minutes timeframe. Daily pivot point support can be found at 98.81, 98.57, 95.32 and resistance at 99.82, 100.23 and 100.48, respectively.