30 Jan 2014
USD/JPY woke up from early morning nap and aimed at 102.50 resistance
FXstreet.com (Moscow) - USD/JPY rebounded from the support of 102.00 and now it is trying to correct higher, to the resistance of 102.50..
JPY safe-haven status is running the show
Safe-haven currencies made a good progress as the emerging market turmoil is growing like a rolling snowball. Now wonder as four large central banks of emerging economies substantially raised rates within last 3 days to stop the capital flight. The US central bank left its fed funds rate unchanged and announced that the asset purchase program will be further reduced by USD 10 bln. in line with the forecast. Though USD/JPY briefly touch the lows at 101.83 and retired to the range above 102.00 support as the FED decision had been priced in by that time. Japanese retail trade data came out at 2.6% against forecasted growth at 3.9%, though this was largely ignored by the market. The whole Asian session today is the shaped by post-FED consolidation. USD/JPY may restore some ground on technical factors. Also there are some important US numbers published during the American session, US 4Q GDP is of particular interest. If the data comes out lower than expected, the markets may scale down further tapering expectations. Though this is not our preferred scenario. The resistance level to watch is 102.50-60, while the important support lies at 102.00 and followed by 101.80
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 102.51, with support below at 101.55, 100.89 and 99.93, with resistance above at 103.17, 104.13, and 104.79. Hourly Moving Averages are bearish, with the 200SMA at 103.50 and the daily 20EMA at 103.58. Hourly RSI is neutral at 36.
JPY safe-haven status is running the show
Safe-haven currencies made a good progress as the emerging market turmoil is growing like a rolling snowball. Now wonder as four large central banks of emerging economies substantially raised rates within last 3 days to stop the capital flight. The US central bank left its fed funds rate unchanged and announced that the asset purchase program will be further reduced by USD 10 bln. in line with the forecast. Though USD/JPY briefly touch the lows at 101.83 and retired to the range above 102.00 support as the FED decision had been priced in by that time. Japanese retail trade data came out at 2.6% against forecasted growth at 3.9%, though this was largely ignored by the market. The whole Asian session today is the shaped by post-FED consolidation. USD/JPY may restore some ground on technical factors. Also there are some important US numbers published during the American session, US 4Q GDP is of particular interest. If the data comes out lower than expected, the markets may scale down further tapering expectations. Though this is not our preferred scenario. The resistance level to watch is 102.50-60, while the important support lies at 102.00 and followed by 101.80
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 102.51, with support below at 101.55, 100.89 and 99.93, with resistance above at 103.17, 104.13, and 104.79. Hourly Moving Averages are bearish, with the 200SMA at 103.50 and the daily 20EMA at 103.58. Hourly RSI is neutral at 36.