13 Jan 2014
USD/JPY consolidates near 4-week lows
FXstreet.com (Córdoba) - The USD/JPY extended its pullback Monday as disappointing US nonfarm payrolls data continued to weigh on the dollar, sending the pair to a 4-week low during the Asian session.
USD/JPY falls sharply after NFP miss
The USD/JPY broke decisively below 104.00 and accelerated toward a low of 103.25 before finding support. However, with the subsequent bounce being capped by the 103.50 area, the pair was confined to a phase of consolidation during the last hours, in the absence of new catalysts. At time of writing, the USD/JPY is trading at the 103.35 zone, recording a 0.6% loss on the day, with no data scheduled for the NY session.
USD/JPY technical outlook
"For now the 105.50 level has become the near term top and is unlikely to be challenged until US labor data shows significant improvement. Meanwhile support lies near the 102.50 level and then much further at 100.00. A break of 102.50 could precipitate a cascade of stop selling as longer term bulls could begin to bail", said Boris Schlossberg, analyst at BK Asset Management. "With long USD/JPY positions being one of the most popular speculative trades at the start of this year, further downside US economic surprises could trigger a very nasty unwind of that trade".
USD/JPY falls sharply after NFP miss
The USD/JPY broke decisively below 104.00 and accelerated toward a low of 103.25 before finding support. However, with the subsequent bounce being capped by the 103.50 area, the pair was confined to a phase of consolidation during the last hours, in the absence of new catalysts. At time of writing, the USD/JPY is trading at the 103.35 zone, recording a 0.6% loss on the day, with no data scheduled for the NY session.
USD/JPY technical outlook
"For now the 105.50 level has become the near term top and is unlikely to be challenged until US labor data shows significant improvement. Meanwhile support lies near the 102.50 level and then much further at 100.00. A break of 102.50 could precipitate a cascade of stop selling as longer term bulls could begin to bail", said Boris Schlossberg, analyst at BK Asset Management. "With long USD/JPY positions being one of the most popular speculative trades at the start of this year, further downside US economic surprises could trigger a very nasty unwind of that trade".