26 Jul 2013
USD/JPY breaking lower, lowest at 98.70
FXstreet.com (Barcelona) - On the back of inflation picking up in Japan, the USD/JPY initally rose towards 99.40, however, a third topside failure the level since broken late in the U.S. has now led the rate to resume the downward momentum to new lows below 98.80.
USD hit by soft data, Hilsenrath
The recent weakness in the USD/JPY comes after two catalysts pulling in the same direction. Firstly, The dollar succumbed on weak Durable Goods report, which as reported by Boris Schlossberg, "although the headline number printed at 4.2% versus 1.1% eyed handily beating expectations, the vast bulk of the gains was due to the volatile transportation sector." Secondly, a dovish article by Fedwatcher Hilsenrath rang the alarm bells, leading more USD running to the exits.
USD/JPY technical outlook
On the H4 chart, the USD/JPY continues to trade in the context of a 100 pips range between 98.80 and 100.80. Asia's lowest so far is 98.91, just shy of 98.88 post Hilsenrath low. According to Jim Langlands, Founder at FXCharts, "Bids are reported at 99.00 and then at 98.70 (50% pivot of 103.73/93.78). Under here, the more distant rising trend support line at 98.15 will provide further support." On the topside, "there are now sellers at 100.00, ahead of today’s high at 100.43" Langlands added.
USD hit by soft data, Hilsenrath
The recent weakness in the USD/JPY comes after two catalysts pulling in the same direction. Firstly, The dollar succumbed on weak Durable Goods report, which as reported by Boris Schlossberg, "although the headline number printed at 4.2% versus 1.1% eyed handily beating expectations, the vast bulk of the gains was due to the volatile transportation sector." Secondly, a dovish article by Fedwatcher Hilsenrath rang the alarm bells, leading more USD running to the exits.
USD/JPY technical outlook
On the H4 chart, the USD/JPY continues to trade in the context of a 100 pips range between 98.80 and 100.80. Asia's lowest so far is 98.91, just shy of 98.88 post Hilsenrath low. According to Jim Langlands, Founder at FXCharts, "Bids are reported at 99.00 and then at 98.70 (50% pivot of 103.73/93.78). Under here, the more distant rising trend support line at 98.15 will provide further support." On the topside, "there are now sellers at 100.00, ahead of today’s high at 100.43" Langlands added.