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7 Oct 2013
USD/JPY breathing heavily on bearish pressure around 97.20
FXstreet.com (Chicago) - USD/JPY fell at the opening of Asia and remained capped below the 97.40 zone despite comeback attempt shortly before Tokyo’s opening. Sensing the tensions in Washington and a country that is politically divided, market participants might be playing their cards thoughtfully in a potential October and debt ceiling crisis.
The United States of America is…divided
Democrats and Republicans have the US paralyzed with Washington and Congress unwilling to negotiate with each other despite harsh consequences on the economy of the country. Ahead of the release of the Fed minutes from last meeting and a debt ceiling that could be breached if the situation is not resolved, October seems indeed, one of the months of major financial instability.
USD/JPY Technical Levels
Price action reveals an exhaustion gap at the beginning of the Asian session with about a 25 pips drop from 97.60 zone. Falling to the 97.14 zone, the pair attempted to wipe out losses but was sent back down at Tokyo’s opening. With lower highs and lows, the bearish pressure and yen’s strengthening is clear as market participants weight on a potential American debt default. Offered at 97.19, the pair navigates between supports aligned at 96.92 (October 3rd lows), 96.42 (August 10th lows) followed by 95.92 (August 8th lows) and the resistances set at 97.44 (August 29th lows), 98.34 (August 29th highs) followed by 99.12 (September 26th highs). According to Valeria Bednarik, FXstreet.com Chief Analyst “in the 4 hours chart indicators retreat from their midlines, as price consolidates around its past week low, keeping the pair exposed to further falls. 200 DMA around 96.60 stands as key support as a break below should lead to a steady slide towards 93.70 past June low”.
The United States of America is…divided
Democrats and Republicans have the US paralyzed with Washington and Congress unwilling to negotiate with each other despite harsh consequences on the economy of the country. Ahead of the release of the Fed minutes from last meeting and a debt ceiling that could be breached if the situation is not resolved, October seems indeed, one of the months of major financial instability.
USD/JPY Technical Levels
Price action reveals an exhaustion gap at the beginning of the Asian session with about a 25 pips drop from 97.60 zone. Falling to the 97.14 zone, the pair attempted to wipe out losses but was sent back down at Tokyo’s opening. With lower highs and lows, the bearish pressure and yen’s strengthening is clear as market participants weight on a potential American debt default. Offered at 97.19, the pair navigates between supports aligned at 96.92 (October 3rd lows), 96.42 (August 10th lows) followed by 95.92 (August 8th lows) and the resistances set at 97.44 (August 29th lows), 98.34 (August 29th highs) followed by 99.12 (September 26th highs). According to Valeria Bednarik, FXstreet.com Chief Analyst “in the 4 hours chart indicators retreat from their midlines, as price consolidates around its past week low, keeping the pair exposed to further falls. 200 DMA around 96.60 stands as key support as a break below should lead to a steady slide towards 93.70 past June low”.