USD/JPY holding above 98 ahead of BoJ Kuroda

FXstreet.com (Barcelona) - The USD/JPY foreign exchange rate is last trading at 98.14 bids, off recent fresh session lows at 98.04, printed in early interbank market to start off the week in the Asia-Pacific ahead of BoJ Kuroda speech at 03:30 GMT.

USD/JPY favours the short side

“Position unwinding ahead of August holiday period is main factor at play here,” said FXWW founder Sean Lee, adding: “Latest data shows Yen shorts had again been increasing sharply and we saw a sharp unwind on Friday. Yen crosses look mixed and volatile consolidation is favoured rather than any big trend moves. The Yen looks oversold and with the market short and probably looking to cover before holidays begin, I still favour the short-side in USD/JPY.”

USD/JPY key technical levels

Immediate support to the downside for USD/JPY lies at current levels as July lows 98.15, followed by Friday's 1-month lows at 97.94, and June 07 highs at 97.79. To the upside, closest resistance shows at June 20 highs 98.30, followed by July 16 lows at 98.89, and past Tuesday's lows at 99.13.

Big week ahead: FOMC, ECB, BoE, NFP...

Much has been speculated about the Fed's timing for 'tapering'. While last week's secondary data releases did little to help clarify the picture, by the end of this week, chances are investors and traders will gain further insights.
Leia mais Previous

Flash: September FOMC critical to forecasts – UBS

The Federal Open Market Committee meets eight times a year – since the end of 2007, all nineteen participants submit fresh economic forecasts at four of the FOMC's meetings, notes Mohi-uddin, Mansoor, Head of Foreign Market Strategy at UBS.
Leia mais Next