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14 May 2014
USD/JPY testing lows in sub-101.80
FXStreet (Edinburgh) - The Japanese yen continues to gather steam vs. the greenback on Wednesday, driving the USD/JPY to fresh lows near 101.70.
USD/JPY capped by 102.40
The pair is losing ground for the second consecutive session after hitting multi-day peaks around 102.40 on Tuesday, as the risk aversion seems to be creeping back to the markets. In the data front, US Producer Prices surprised to the upside in April, expanding at an annual pace of 2.1%. Next of note in the Japanese economy will be the GDP figures for the first quarter, expected at 1.0% inter-quarter and 4.2% over the last twelve months. According to Emmanuel Ng, FX Strategist at OCBC Bank, “USD-JPY has continued to orbit the 102.00 region since February and we hazard that this may have been on the back of a lack of lasting watershed developments from both the Fed and the BOJ. Supported JPY-crosses may temper the downside for the USD-JPY in the short term with the 55-day MA (102.35) and then 102.50 expected to cap. On the downside, supports are seen towards 101.75 and 102.00”.
USD/JPY relevant levels
The pair is now losing 0.36% at 101.88 with the next support at 101.72 (low May 14) ahead of 101.55 (low May 9) and then 101.43 (low May 7). On the upside, a breakout of 102.36 (high May 13) would open the door to 102.44 (daily cloud base) and finally 102.75 (daily cloud top).
USD/JPY capped by 102.40
The pair is losing ground for the second consecutive session after hitting multi-day peaks around 102.40 on Tuesday, as the risk aversion seems to be creeping back to the markets. In the data front, US Producer Prices surprised to the upside in April, expanding at an annual pace of 2.1%. Next of note in the Japanese economy will be the GDP figures for the first quarter, expected at 1.0% inter-quarter and 4.2% over the last twelve months. According to Emmanuel Ng, FX Strategist at OCBC Bank, “USD-JPY has continued to orbit the 102.00 region since February and we hazard that this may have been on the back of a lack of lasting watershed developments from both the Fed and the BOJ. Supported JPY-crosses may temper the downside for the USD-JPY in the short term with the 55-day MA (102.35) and then 102.50 expected to cap. On the downside, supports are seen towards 101.75 and 102.00”.
USD/JPY relevant levels
The pair is now losing 0.36% at 101.88 with the next support at 101.72 (low May 14) ahead of 101.55 (low May 9) and then 101.43 (low May 7). On the upside, a breakout of 102.36 (high May 13) would open the door to 102.44 (daily cloud base) and finally 102.75 (daily cloud top).