5 Nov 2013
USD/JPY moves to 98.30 day lows; exporters, Nikkei weigh
FXstreet.com (Barcelona) - USD/JPY has slipped over 25/30 pips in the Tokyo session to 98.37 day lows, after the Nikkei 225 returned its early 0.60% gains to currently have paused around its flat level for the day.
USD/JPY still trapped by daily triangle
From a daily perspective, USD/JPY remains confined within a contracting triangle, one that keeps getting narrower by the day, yet it appears to still have some more days of erratic moves until Friday's NFP, when a breakout in either direction may be seen. Judging by the latest price action, the upside remains the most exposed direction as technicals stand.
Exporters step in
In today's Asian session, other than the correction lower in the Nikkei, bank sources also report exporters selling USD/JPY after the long weekend, likely intensifying the downside pressure.
USD/JPY technical levels
Short term technicals continue to be constructive, with the pair building higher highs and higher lows since it recovery off dynamic trendline support at 97.00 round number.
As long as fall are kept by 97.80 (last swing low), the upward bias for short term plays should remain favoured. On the upside, a break and hold on a daily basis above 99.00 is necessary to allow more ambitious targets.
USD/JPY still trapped by daily triangle
From a daily perspective, USD/JPY remains confined within a contracting triangle, one that keeps getting narrower by the day, yet it appears to still have some more days of erratic moves until Friday's NFP, when a breakout in either direction may be seen. Judging by the latest price action, the upside remains the most exposed direction as technicals stand.
Exporters step in
In today's Asian session, other than the correction lower in the Nikkei, bank sources also report exporters selling USD/JPY after the long weekend, likely intensifying the downside pressure.
USD/JPY technical levels
Short term technicals continue to be constructive, with the pair building higher highs and higher lows since it recovery off dynamic trendline support at 97.00 round number.
As long as fall are kept by 97.80 (last swing low), the upward bias for short term plays should remain favoured. On the upside, a break and hold on a daily basis above 99.00 is necessary to allow more ambitious targets.