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22 May 2014
USD/JPY around 101.60, US data eyed
FXStreet (Edinburgh) - The Japanese yen is losing upside momentum on Thursday, lifting the USD/JPY back to the 101.60/70 region.
USD/JPY firmer on risk appetite
The better-than-expected manufacturing PMI in the Chinese economy boosted the risk-off trade at the very beginning of the Asian session, helping spot to gather traction to the vicinity of 101.80 and put further distance from the key support area at 100.75. Data-wise, US Initial Claims, Existing Home Sales and the Markit manufacturing PMI would likely bring some volatility in the pair later. “While USD broke below the strong support at 101.00, the down-move did not reach the target highlighted at 100.70/75 (low of 100.81). The subsequent rally from the low suggests that USD has likely seen an interim short-term base. Allow for a pullback towards 101.10 but as long as 100.80 is not taken out, expect another leg higher towards 101.70”, noted Quek Ser Leang, Market Strategist at UOB Group.
USD/JPY levels to watch
The pair is now advancing 0.26% at 101.63 with the immediate resistance at 101.76 (high May 22) followed by 101.92 (Kijun Sen) and finally 102.13 (high May 15). On the flip side, a breach below 100.81 (low May 21) would expose 100.76 (2014 low Feb.4) and then 100.63 (50% of 95.81-105.45).
USD/JPY firmer on risk appetite
The better-than-expected manufacturing PMI in the Chinese economy boosted the risk-off trade at the very beginning of the Asian session, helping spot to gather traction to the vicinity of 101.80 and put further distance from the key support area at 100.75. Data-wise, US Initial Claims, Existing Home Sales and the Markit manufacturing PMI would likely bring some volatility in the pair later. “While USD broke below the strong support at 101.00, the down-move did not reach the target highlighted at 100.70/75 (low of 100.81). The subsequent rally from the low suggests that USD has likely seen an interim short-term base. Allow for a pullback towards 101.10 but as long as 100.80 is not taken out, expect another leg higher towards 101.70”, noted Quek Ser Leang, Market Strategist at UOB Group.
USD/JPY levels to watch
The pair is now advancing 0.26% at 101.63 with the immediate resistance at 101.76 (high May 22) followed by 101.92 (Kijun Sen) and finally 102.13 (high May 15). On the flip side, a breach below 100.81 (low May 21) would expose 100.76 (2014 low Feb.4) and then 100.63 (50% of 95.81-105.45).