24 Jul 2013
USD/JPY continuing bounce after finishing off lows on Tuesday
FXstreet.com (Barcelona) - USD/JPY attempted to stabilize late Tuesday following some serious news / data-related selling early in the week. 98.88 is the key support level for DXY bulls to hold.
USD/JPY still vulnerable to more downside; US data Wednesday may drive action
The action in the USD/JPY early this week has been driven by the initial Yen-bullish reaction to last Sunday’s Japanese elections and the consistent flow of weaker-than-expected economic data emanating from the U.S. The latest disappointing US data came out on Tuesday in the form of disappointing home price data and a below-expectations Richmond Fed Manufacturing Index. The data Tuesday was enough to force a technical break of short-term support for the DXY.
USD/JPY oversold and due for a bounce, but headed lower eventually
Technicians are universally bullish on the USD/JPY on an intermediate to long-term basis. However, Tim Thielen, CMT and author of The Sea Change Report, sees the cross moving down to 92.53 before the macro bull trend in the cross resumes. Shorter-term support for USD/JPY comes in at Tuesday’s low of 99.136 followed by important short-term support at the 7/16 pivot low of 98.88. A break of that level will likely lead to an acceleration of the downside action. Resistance for USD/JPY comes in at Tuesday’s peak of 100.175 and is backed up by Friday’s intraday high at 100.859 and the 7/8 intraday high at 101.525.
USD/JPY still vulnerable to more downside; US data Wednesday may drive action
The action in the USD/JPY early this week has been driven by the initial Yen-bullish reaction to last Sunday’s Japanese elections and the consistent flow of weaker-than-expected economic data emanating from the U.S. The latest disappointing US data came out on Tuesday in the form of disappointing home price data and a below-expectations Richmond Fed Manufacturing Index. The data Tuesday was enough to force a technical break of short-term support for the DXY.
USD/JPY oversold and due for a bounce, but headed lower eventually
Technicians are universally bullish on the USD/JPY on an intermediate to long-term basis. However, Tim Thielen, CMT and author of The Sea Change Report, sees the cross moving down to 92.53 before the macro bull trend in the cross resumes. Shorter-term support for USD/JPY comes in at Tuesday’s low of 99.136 followed by important short-term support at the 7/16 pivot low of 98.88. A break of that level will likely lead to an acceleration of the downside action. Resistance for USD/JPY comes in at Tuesday’s peak of 100.175 and is backed up by Friday’s intraday high at 100.859 and the 7/8 intraday high at 101.525.