24 Oct 2013
USD/JPY stronger at opening; still under 97.50
FXstreet.com (Chicago) - USD/JPY opened Tokyo trading stronger with bulls fueling the pair to 97.51 session highs shortly after the release of foreign investment data in the land of the rising sun.
At 1412.7B, foreign bond investments outperformed considerably past results at 386.9B. Foreign investment in Japanese stocks was 297.8B vs. prior 144.7B.
USD/JPY Technical Levels
Technically speaking, the pair is offered at 97.47 and oscillates between the supports aligned at 97.20 (October 2nd lows), 96.81 (October 8th lows) ahead of 96.39 (August 10th lows) and the resistances set at 97.54 (October 17th lows), 98 (October 15th lows) followed by 98.46 (October 21st highs). In longer-term charts, monthly and weekly, primary and secondary trends point up contrary to short-term trend facing immediate resistance at 97.54.
According to Jim Langlands from FXcharts, “the Yen recovered today, mainly as a result of safe haven demand following the news that China may need to tighten rates to control inflation. The Dollar – and the Yen crosses – moved sharply lower as risk sentiment evaporated and it fell to the strong support at 97.15/20 (200 DMA & 76.4% of 96.55/99.00) which has so far held. This is the 2nd time recently that the 200DMA has come under pressure. Keep an eye on it. If 97.00 does break, it could trigger quite a few stops and would also bring about some fresh shorts.”
At 1412.7B, foreign bond investments outperformed considerably past results at 386.9B. Foreign investment in Japanese stocks was 297.8B vs. prior 144.7B.
USD/JPY Technical Levels
Technically speaking, the pair is offered at 97.47 and oscillates between the supports aligned at 97.20 (October 2nd lows), 96.81 (October 8th lows) ahead of 96.39 (August 10th lows) and the resistances set at 97.54 (October 17th lows), 98 (October 15th lows) followed by 98.46 (October 21st highs). In longer-term charts, monthly and weekly, primary and secondary trends point up contrary to short-term trend facing immediate resistance at 97.54.
According to Jim Langlands from FXcharts, “the Yen recovered today, mainly as a result of safe haven demand following the news that China may need to tighten rates to control inflation. The Dollar – and the Yen crosses – moved sharply lower as risk sentiment evaporated and it fell to the strong support at 97.15/20 (200 DMA & 76.4% of 96.55/99.00) which has so far held. This is the 2nd time recently that the 200DMA has come under pressure. Keep an eye on it. If 97.00 does break, it could trigger quite a few stops and would also bring about some fresh shorts.”