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17 Sep 2013
USD/JPY is trading above 99.00 ahead of US CPI, FOMC
FXstreet.com (Athens)- The USD/JPY is hovering above 99.00 area since the opening of the European trading session, mainly due to the American dollar weakening.
The USD/JPY is moving sideways above 99.00 due to lack of news and greenback weakening
Today the USD/JPY was mainly driven by US weakness and lack of news to give further momentum to the pair. Generally speaking the week ahead is a very quiet calendar week in aspects of Asian markets, as besides Monday where Tokyo was closed, Chinese markets are closed on Thursday and Friday due to the mid-Autumn festival (the Hong Kong Stock Exchange is shut on Friday only). Regarding the pair, the USD/JPY is struggling to move above the 99,00 area, as the investors seem to be very cautious ahead of FOMC. However, after a very long weekend, there was a gently bid in Asian time and since then bargain hunters dominate all over the globe. Besides, FOMC traders should not forget that we are ahead of the crucial release of the US CPI. The released figure would might be of great significance, as softer CPI data would add to expectation that the Fed could remain on hold this week with plans to reduce the amount of monthly bond purchases. Thus in that case, we might see a further downward pressure on the greenback.
Technical Outlook and Strategic Bias on USD/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “USD/JPY our view remains neutral to positive. Last week the market stalled at 100.62 and is seeing a minor correction lower. We have minor support at 98.25. The upside bias remains above the 97.26 support line, but ideally we should now see dips hold the cloud support at 98.27/97.64. Our initial upside target is the 101.54/60 July high and the Fibonacci retracement, with a long term Fibonacci retracement offering a 105.48resistance point above here. Below 97.26 we would revert to neutral as the risk will increase of further slippage to the 200 day ma at 95.65.”
The USD/JPY is moving sideways above 99.00 due to lack of news and greenback weakening
Today the USD/JPY was mainly driven by US weakness and lack of news to give further momentum to the pair. Generally speaking the week ahead is a very quiet calendar week in aspects of Asian markets, as besides Monday where Tokyo was closed, Chinese markets are closed on Thursday and Friday due to the mid-Autumn festival (the Hong Kong Stock Exchange is shut on Friday only). Regarding the pair, the USD/JPY is struggling to move above the 99,00 area, as the investors seem to be very cautious ahead of FOMC. However, after a very long weekend, there was a gently bid in Asian time and since then bargain hunters dominate all over the globe. Besides, FOMC traders should not forget that we are ahead of the crucial release of the US CPI. The released figure would might be of great significance, as softer CPI data would add to expectation that the Fed could remain on hold this week with plans to reduce the amount of monthly bond purchases. Thus in that case, we might see a further downward pressure on the greenback.
Technical Outlook and Strategic Bias on USD/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “USD/JPY our view remains neutral to positive. Last week the market stalled at 100.62 and is seeing a minor correction lower. We have minor support at 98.25. The upside bias remains above the 97.26 support line, but ideally we should now see dips hold the cloud support at 98.27/97.64. Our initial upside target is the 101.54/60 July high and the Fibonacci retracement, with a long term Fibonacci retracement offering a 105.48resistance point above here. Below 97.26 we would revert to neutral as the risk will increase of further slippage to the 200 day ma at 95.65.”