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27 Jan 2014
USD/JPY remains capped by 102.80
FXstreet.com (Edinburgh) - The upside momentum in the USD/JPY seems to have found strong resistance in the 102.80 region on Monday.
USD/JPY stronger on Japan trade data
The Japanese data from the external sector released overnight showed the trade deficit has widened during December to ¥1.3 trillion with both exports and imports coming in short of estimates and adding further selling pressure to the JPY. In addition, the greenback is showing some signs of relief, advancing for the second consecutive session so far. According to strategists at UBS, “the yen cannot rely on currency weakness alone to help close the trade deficit, which leaves the currency vulnerable to further downside over the months ahead. We reiterate our end-2014 USDJPY forecast of 110”.
USD/JPY key levels
The pair is now up 0.53% at 102.79 with the next resistance at 102.97 (low Jan.23) ahead of 103.97 (low Jan.22) and finally 104.15 (200-h MA). On the downside, a violation of 102.00 (low Jan.24) would allow 101.76 (38.2% of 95.81-105.45) and then 101.62 (low Dec.5).
USD/JPY stronger on Japan trade data
The Japanese data from the external sector released overnight showed the trade deficit has widened during December to ¥1.3 trillion with both exports and imports coming in short of estimates and adding further selling pressure to the JPY. In addition, the greenback is showing some signs of relief, advancing for the second consecutive session so far. According to strategists at UBS, “the yen cannot rely on currency weakness alone to help close the trade deficit, which leaves the currency vulnerable to further downside over the months ahead. We reiterate our end-2014 USDJPY forecast of 110”.
USD/JPY key levels
The pair is now up 0.53% at 102.79 with the next resistance at 102.97 (low Jan.23) ahead of 103.97 (low Jan.22) and finally 104.15 (200-h MA). On the downside, a violation of 102.00 (low Jan.24) would allow 101.76 (38.2% of 95.81-105.45) and then 101.62 (low Dec.5).