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3 Mar 2014
USD/JPY has recovered from Asian lows, but bears are still strong
FXStreet (Moscow) - USD/JPY managed to rebound from the current Asian lows of 101.25 and return to 101.45 on the back of fresh demand spotted around 101.30 level; though the sort-term downside pressure is still strong and further losses are expected amid acute anti-risk sentiments.
USD/JPY is listening to global news
USD/JPY had a second negative daily close in a row as the Japanese currency grew across the board on the back of global risk-aversion play. The currency pair poked an area of strong demand at 101.54 late on Friday, but managed to finish the week at 101.77. Actually the Yen upside movements have been rather subdued lately, considering positive domestic inflation data and general risk-off sentiments caused by geopolitical tensions in Ukraine. On the longer-term scale, USD/JPY has not left the range yet. Dollar safe-heaven status may be partially responsible for this Yen quietness, though it is hard to be sure that the US currency will retain its appeal now that the USA is at dagger’s point with Russia. Anyway, from the fundamental point of view there is a volatile week in store for us. It is packed with high profile macro events - three monetary policy decisions, US labor market data and ISM numbers to name just a few. Today US Manufacturing ISM will be in focus. The index is expected to improve slightly after a sharp drop in January (forecast 52.3 against 51.3 in Jan), though the modest regional activity implies that the actual numbers may fail the expectations. In this case, USD feel the pain across the board. The key levels to watch: 101.25 (current Asian low) followed by the area of strong demand at 101.00 on the downside; 101.69 (current Asian high) followed by 102.00 with minor offers on approach on the upside.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 101.88, with support below at 101.45, 101.12 and 100.69, with resistance above at 102.21, 102.64, and 102.97. Hourly Moving Averages are bearish, with the 200SMA at 102.24 and the daily 20EMA at 102.33. Hourly RSI is neutral at 35.
USD/JPY is listening to global news
USD/JPY had a second negative daily close in a row as the Japanese currency grew across the board on the back of global risk-aversion play. The currency pair poked an area of strong demand at 101.54 late on Friday, but managed to finish the week at 101.77. Actually the Yen upside movements have been rather subdued lately, considering positive domestic inflation data and general risk-off sentiments caused by geopolitical tensions in Ukraine. On the longer-term scale, USD/JPY has not left the range yet. Dollar safe-heaven status may be partially responsible for this Yen quietness, though it is hard to be sure that the US currency will retain its appeal now that the USA is at dagger’s point with Russia. Anyway, from the fundamental point of view there is a volatile week in store for us. It is packed with high profile macro events - three monetary policy decisions, US labor market data and ISM numbers to name just a few. Today US Manufacturing ISM will be in focus. The index is expected to improve slightly after a sharp drop in January (forecast 52.3 against 51.3 in Jan), though the modest regional activity implies that the actual numbers may fail the expectations. In this case, USD feel the pain across the board. The key levels to watch: 101.25 (current Asian low) followed by the area of strong demand at 101.00 on the downside; 101.69 (current Asian high) followed by 102.00 with minor offers on approach on the upside.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 101.88, with support below at 101.45, 101.12 and 100.69, with resistance above at 102.21, 102.64, and 102.97. Hourly Moving Averages are bearish, with the 200SMA at 102.24 and the daily 20EMA at 102.33. Hourly RSI is neutral at 35.