8 Nov 2013
USD/JPY consolidates; still lacks clear direction
FXstreet.com (Athens) – The USD/JPY is hovering around 98.15 amidst a very tight area, but it is more than obvious that the cross is lacking of a clear directional fundamental driver.
USD/JPY hovers at 98.15; will NFP release lead the cross out of its consolidation mode?
The USD/JPY has been trading to the upper level during the European trading hours in contradiction to overnight hours, where the cross was under pressure due mainly to Nikkei decline (closed down 0.8%). Briefly, the USD/JPY seems to have find a solid support the last couple of hours and ahead of the big event of the day (i.e. NFP release), mainly due to the fact that the cross is well bid before weekends on decent fix demand, while we are also ahead of a Sunday hefty Japanese data. As it is widely known the usual suspects on such moves on the cross before weekends, are mostly the Japanese importers as well as investors. However, the cross remains stuck in the middle looking for a fundamental driver to get out of the congestion range.
Technical Perspectives on the USD/JPY
The USD/JPY might find solid resistance at the 99.67 area (20th September high, as well as 76.4% Fibonacci resistance), in order to move above the 100.00 handle. On the downside, USD/JPY has found solid support at its 200-daily SMA (now laying at 97.71), but it could be seen that generally the area of the yesterday’s low of 98.59 - 97.71 might be used as a crucial support area. For the time being, the cross might move sideways amidst the Ichimoku cloud of 98.20 -98.40, but on the upper side it might find major difficult to trend higher as there is the 100-daily SMA at 98.55 area.
USD/JPY hovers at 98.15; will NFP release lead the cross out of its consolidation mode?
The USD/JPY has been trading to the upper level during the European trading hours in contradiction to overnight hours, where the cross was under pressure due mainly to Nikkei decline (closed down 0.8%). Briefly, the USD/JPY seems to have find a solid support the last couple of hours and ahead of the big event of the day (i.e. NFP release), mainly due to the fact that the cross is well bid before weekends on decent fix demand, while we are also ahead of a Sunday hefty Japanese data. As it is widely known the usual suspects on such moves on the cross before weekends, are mostly the Japanese importers as well as investors. However, the cross remains stuck in the middle looking for a fundamental driver to get out of the congestion range.
Technical Perspectives on the USD/JPY
The USD/JPY might find solid resistance at the 99.67 area (20th September high, as well as 76.4% Fibonacci resistance), in order to move above the 100.00 handle. On the downside, USD/JPY has found solid support at its 200-daily SMA (now laying at 97.71), but it could be seen that generally the area of the yesterday’s low of 98.59 - 97.71 might be used as a crucial support area. For the time being, the cross might move sideways amidst the Ichimoku cloud of 98.20 -98.40, but on the upper side it might find major difficult to trend higher as there is the 100-daily SMA at 98.55 area.