USD/JPY stalled above 98.00

FXstreet.com (Chicago) - USD/JPY continues trending sideways after bouncing off 97.88 lows. Both in Japan and the US lots of official data were released. The dollar trades stronger while markets remain down Syrian outlook.

Data recap

Last night in Japan, industrial production was 1.6% s. previous -4.6% (YoY). The unemployment rate was 3.8% vs. expected and past 3.9%. The National CPI ex food, energy (YoY) was 0.7% vs. past 0.2% while the Nomura/ JMMA Manufacturing Purchasing manager index for August was 52.2 vs. past 50.7. Housing starts (YoY) was 12% vs. expected 14.5% and past 15.3%. Construction orders were 13.7% vs. past 21.9%. In the US, amid Fed’s tapering and the Syrian outlook after UN declarations, market participants digested a personal income at 0.1% vs. expected 0.2% and past 0.3%. The core personal consumption expenditure price index was also 0.1% vs. expected 0.2% while personal spending was 0.1% vs. past 0.6% and previous 0.3%. The Chicago purchasing managers index was 53.0 vs. estimates at 53.2 and previous 52.3. Finally, the Reuterns/Michigan consumer sentiment index was 82.1 vs. past 85.1 and estimates at 80.5.

USD/JPY Technical Levels

Technically speaking, the pair trades at 98.22 between supports at 98.11 (August 19th highs), 97.85 (August16th highs) followed by 97.57 (August 27th highs) and resistances at 98.40 (August 23rd lows), 98.73 (August 26th highs) ahead of 99.14 (August 24th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and trades above the EMA20.

Flash: EUR/USD fortunes hang on QE – BMO Capital Markets

From a flows and funding basis, the most important difference between the EUR and the USD is that the latter is a “QE currency” whilst the former is not, notes Greg Anderson at BMO Capital Markets.
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