25 Sep 2013
USD/JPY slightly upwards after the US durable goods release
FXstreet.com (Athens)- The USD/JPY is hovering around 98.58, just a few pips upwards after the US release.
USD/JPY rebounded from daily lows as good US data drive the pair the upper trend
The USD/JPY was moving at its daily lows before the data released, but as soon as the US durable goods announced at better than expected level (+0.1% in August versus -0.2% in survey), the pair gained almost 20 pips. Traders should not taken aback by this trend shift, as the pickup in durable goods along with the more broad-based recovery may heighten demands for large-ticket items, and a positive development may generate a near-term rally in the dollar as it raises the prospects that Fed will change its current policy stance. Last but not least, traders should not forget that the yen is the only currency on the majors that has managed to outperform the greenback last week, therefore it would be wise enough to focus on the capability of the Japanese currency to hold above 98.50 support.
Technical Outlook and Strategic Bias on USD/JPY
Emmanuel Ng of OCBC Bank, mentions that “the USD/JPY may remain under the weather amid broad based uncertainty in the short term with investors now increasingly skittish towards the JPY-crosses. Expect resistance for the USD-JPY around the 99.00/10 area and if the 55-day MA (98.69) is punctured, a drift towards 98.25 cannot be discounted.”
USD/JPY rebounded from daily lows as good US data drive the pair the upper trend
The USD/JPY was moving at its daily lows before the data released, but as soon as the US durable goods announced at better than expected level (+0.1% in August versus -0.2% in survey), the pair gained almost 20 pips. Traders should not taken aback by this trend shift, as the pickup in durable goods along with the more broad-based recovery may heighten demands for large-ticket items, and a positive development may generate a near-term rally in the dollar as it raises the prospects that Fed will change its current policy stance. Last but not least, traders should not forget that the yen is the only currency on the majors that has managed to outperform the greenback last week, therefore it would be wise enough to focus on the capability of the Japanese currency to hold above 98.50 support.
Technical Outlook and Strategic Bias on USD/JPY
Emmanuel Ng of OCBC Bank, mentions that “the USD/JPY may remain under the weather amid broad based uncertainty in the short term with investors now increasingly skittish towards the JPY-crosses. Expect resistance for the USD-JPY around the 99.00/10 area and if the 55-day MA (98.69) is punctured, a drift towards 98.25 cannot be discounted.”