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7 Jan 2014
USD/JPY pares losses
FXstreet.com (Moscow) - USD/JPY has started Asian session at 104.27 and moved to an intraday high at 105.49; currently it is consolidating close to 104.45.
JPY rally is a mere profit-taking game
The Nikkei Stock Average slipped Tuesday 0.1% after Monday’s decline of 2.4%, which might lend the Japanese currency some short-term support due to risk aversion. Though now USD/JPY seems to be in the upside correction mode after yesterday’s failed attempt to break below 104.00. There are no macro reports great interest from Japan until January 15 (when we have inflation numbers) and January 22 (Bank of Japan policy meeting). Though it is still some time away, so the Yen movements are most likely to be dominated by position adjustment and risk sentiments. Lots of traders sold yen on the expectations of further monetary easing and new QE measures from Bank of Japan. No wonder that many traders become nervous and close short positions to take profit. At the same time new players are wary of entering the market ahead of the risky events. From this perspective the Yen recovery may be short-lived.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 104.35, with support below at 103.74, 103.30 and 102.69, with resistance above at 104.80, 105.40, and 105.85. Hourly Moving Averages are mixed, with the 200SMA at 104.87 and the daily 20EMA at 104.05. Hourly RSI is neutral at 55.93.
JPY rally is a mere profit-taking game
The Nikkei Stock Average slipped Tuesday 0.1% after Monday’s decline of 2.4%, which might lend the Japanese currency some short-term support due to risk aversion. Though now USD/JPY seems to be in the upside correction mode after yesterday’s failed attempt to break below 104.00. There are no macro reports great interest from Japan until January 15 (when we have inflation numbers) and January 22 (Bank of Japan policy meeting). Though it is still some time away, so the Yen movements are most likely to be dominated by position adjustment and risk sentiments. Lots of traders sold yen on the expectations of further monetary easing and new QE measures from Bank of Japan. No wonder that many traders become nervous and close short positions to take profit. At the same time new players are wary of entering the market ahead of the risky events. From this perspective the Yen recovery may be short-lived.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 104.35, with support below at 103.74, 103.30 and 102.69, with resistance above at 104.80, 105.40, and 105.85. Hourly Moving Averages are mixed, with the 200SMA at 104.87 and the daily 20EMA at 104.05. Hourly RSI is neutral at 55.93.