11 Nov 2013
USD/JPY drifting slightly to the downside despite buoyant Asian equity markets
FXstreet.com (Barcelona) - Typically the USD/JPY would be rallying to the upside on Yen weakness associated with strength in the Nikkei Index. Monday, however, the Yen is showing decent strength right along with strength in the Nikkei.
USD/JPY traders go into a dark period until Tuesday’s session
The news out of China over the weekend gave the entire Asia-Pacific region a boost in terms of the prevailing risk attitude. That boost has lifted the Japanese Nikkei Index to start the week – which is to be expected. What is not normal in this situation is the simultaneous lift in the Yen’s relative strength that is occurring right now. We’ll have to see which gives way first – the Yen’s strength in a “risk-on” environment or the Nikkei’s strength when the Yen is strong.
Technical outlook for USD/JPY
Technicians say USD/JPY is correcting lower ahead of what should be a breakout above short-term resistance at Thursday’s peak of 99.40. A close above that level will open up more rally potential – perhaps up to the maximum “correction resistance” at 99.80. Support for USD/JPY comes in at Thursday’s low of 97.60 and is followed up by the 10/25 low at 96.93.
USD/JPY traders go into a dark period until Tuesday’s session
The news out of China over the weekend gave the entire Asia-Pacific region a boost in terms of the prevailing risk attitude. That boost has lifted the Japanese Nikkei Index to start the week – which is to be expected. What is not normal in this situation is the simultaneous lift in the Yen’s relative strength that is occurring right now. We’ll have to see which gives way first – the Yen’s strength in a “risk-on” environment or the Nikkei’s strength when the Yen is strong.
Technical outlook for USD/JPY
Technicians say USD/JPY is correcting lower ahead of what should be a breakout above short-term resistance at Thursday’s peak of 99.40. A close above that level will open up more rally potential – perhaps up to the maximum “correction resistance” at 99.80. Support for USD/JPY comes in at Thursday’s low of 97.60 and is followed up by the 10/25 low at 96.93.