10 Oct 2013
USD/JPY holds near highs ahead
FXstreet.com (Córdoba) - The USD/JPY extended gains into a third day Thursday and approached the 98.00 psychological level, supported by hopes of a debt ceiling deal in the US.
Signs of progress in US budget talks lifted the dollar and helped to boost market sentiment, with stocks recovering in Europe. As for the USD/JPY, the pair rose to an 8-day high of 97.87 but lacked strength to make an attempt against 98.00. At time of writing, USD/JPY is trading at the 97.80 zone, 0.5% above its opening price, ahead of the US jobless claims data.
Elsewhere, the focus remains on the negotiations in Washington as markets continue to hope for a deal ahead of the debt limit deadline. There is evidence that Republican and Democrat parties may be willing to compromise to increase the debt ceiling limit for a short term in order to avoid a default and allow time for broader negotiations on the budget.
USD/JPY technical levels
In terms of technical levels, USD/JPY could find immediate resistances at 97.87 (daily high) and 98.00 (psychological level) ahead of 98.20 (20-day SMA). On the downside, supports are seen at 97.63 (Oct 9 high) and 97.35 (daily low).
Signs of progress in US budget talks lifted the dollar and helped to boost market sentiment, with stocks recovering in Europe. As for the USD/JPY, the pair rose to an 8-day high of 97.87 but lacked strength to make an attempt against 98.00. At time of writing, USD/JPY is trading at the 97.80 zone, 0.5% above its opening price, ahead of the US jobless claims data.
Elsewhere, the focus remains on the negotiations in Washington as markets continue to hope for a deal ahead of the debt limit deadline. There is evidence that Republican and Democrat parties may be willing to compromise to increase the debt ceiling limit for a short term in order to avoid a default and allow time for broader negotiations on the budget.
USD/JPY technical levels
In terms of technical levels, USD/JPY could find immediate resistances at 97.87 (daily high) and 98.00 (psychological level) ahead of 98.20 (20-day SMA). On the downside, supports are seen at 97.63 (Oct 9 high) and 97.35 (daily low).