21 Mar 2014
USD/JPY consolidated for a weekly close on 102?
FXStreet (Guatemala) - USD/JPY rallied on the back of the FOMC and the USD has been consolidating since on the mid 102’s, with USD/JPY maintaining the bid tone.
Daragh Maher, FX Strategist at HSBC, explained the gap between end of QE and first rate hike is what counts. “Tapering no longer captivates the market. We argued back in January that the key driver to the market would become the expected gap between the end of QE and the first rate hike. Yellen's suggestion last night that this gap might only be 6 months caught the market by surprise and provoked widespread USD buying. Unless the Fed back-tracks in future comments, this should provide further support for the USD”. Karen Jones, chief analyst at Commerzbank explained that USD/JPY has rallied higher, but the topside so far has been thwarted by the 55 day ma at 102.79. “We remain unable to rule out a slide towards the 100.77 February trough and the 200 day moving average at 100.39. We note that the Elliott wave count on the intraday charts is giving conflicts signals, so would keep trading light for now”.
USD/JPY Levels
The 20 DMA is 102.29, the 50 DMA is 102.65 and the 200 DMA is 100.39. RSI (14) reads 57.07. Supports are ascending from 101.27, 101.44, 101.69 and 101.94. Spot is 102.36 while resistances are 102.69, 102.86, 103.15 and 103.43.
Daragh Maher, FX Strategist at HSBC, explained the gap between end of QE and first rate hike is what counts. “Tapering no longer captivates the market. We argued back in January that the key driver to the market would become the expected gap between the end of QE and the first rate hike. Yellen's suggestion last night that this gap might only be 6 months caught the market by surprise and provoked widespread USD buying. Unless the Fed back-tracks in future comments, this should provide further support for the USD”. Karen Jones, chief analyst at Commerzbank explained that USD/JPY has rallied higher, but the topside so far has been thwarted by the 55 day ma at 102.79. “We remain unable to rule out a slide towards the 100.77 February trough and the 200 day moving average at 100.39. We note that the Elliott wave count on the intraday charts is giving conflicts signals, so would keep trading light for now”.
USD/JPY Levels
The 20 DMA is 102.29, the 50 DMA is 102.65 and the 200 DMA is 100.39. RSI (14) reads 57.07. Supports are ascending from 101.27, 101.44, 101.69 and 101.94. Spot is 102.36 while resistances are 102.69, 102.86, 103.15 and 103.43.