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7 Mar 2014
USD/JPY testing lows around 102.80
FXStreet (Edinburgh) - The USD/JPY is extending its decline from recent peaks beyond 103.00 the figure on Friday, ahead of today’s US Payrolls.
USD/JPY off peaks near 103.20
A context favourable to the riskier assets helped to lift spot to 5-week highs in the vicinity of 103.20 earlier on in the week, although the rally seems to have run out of legs. In the same tone, non-relevant docket in the Japanese economy collaborated with the upside. Ahead in the day, the pair would be under pressure as US NFP are due, with consensus expecting the economy to have created 150K jobs in February. In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, spot “has rallied higher to reach the 55 day ma at 103.19, we suspect the upmove may falter here and currently, if it does
so, we remain unable to rule out a re-test of the 101.29 support line. However our favoured scenario is that dips lower will be fairly tepid and contained circa 102.40 for a push through this moving average”.
USD/JPY levels to consider
As of writing the pair is down 0.16% at 102.86 with the next support at 102.73 (daily cloud base) ahead of 102.71 (23.6% of 101.20-103.17) and then 102.27 (low Mar.6). On the upside, a break above 103.17 (high Mar.7) would aim for 103.45 (high Jan.29) and finally 103.58 (high Jan.24).
USD/JPY off peaks near 103.20
A context favourable to the riskier assets helped to lift spot to 5-week highs in the vicinity of 103.20 earlier on in the week, although the rally seems to have run out of legs. In the same tone, non-relevant docket in the Japanese economy collaborated with the upside. Ahead in the day, the pair would be under pressure as US NFP are due, with consensus expecting the economy to have created 150K jobs in February. In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, spot “has rallied higher to reach the 55 day ma at 103.19, we suspect the upmove may falter here and currently, if it does
so, we remain unable to rule out a re-test of the 101.29 support line. However our favoured scenario is that dips lower will be fairly tepid and contained circa 102.40 for a push through this moving average”.
USD/JPY levels to consider
As of writing the pair is down 0.16% at 102.86 with the next support at 102.73 (daily cloud base) ahead of 102.71 (23.6% of 101.20-103.17) and then 102.27 (low Mar.6). On the upside, a break above 103.17 (high Mar.7) would aim for 103.45 (high Jan.29) and finally 103.58 (high Jan.24).