Back
18 Oct 2013
USD/JPY upwards; is the 50% recent correction pullback over?
FXstreet.com (Athens) – The USD/JPY is caught amidst a tight range today, after the yesterday’s sharp pullback on profit-taking after the cross touched the 99.00 area.
USD/JPY muted today; bears won’t find it that easy as the 200- DMA (97.14) is well supported
The USD/JPY is currently trading sidelines almost unchanged since the kick off of the Asian trading session. However, the cross managed to overcome the 98.00 handle on early Wellington session mostly due to the constant buying demand on behalf of the Japanese importers as well as on the general Japanese currency depicted weakness in other crosses. Traders should focus on whether the 50% recent sharp pullback - after the cross hit the big figure as of 99.00 on profit-taking - will push further downwards the cross or not. All in all, bears would be probably find themselves in very difficult position, as long as the USD/JPY remains far away from the 200-daily SMA at 97.14, as well as from the low as of the 9th October at 96.83 area.
Technical aspects on the USD/JPY
Axel Rudolph, Head Technical Analyst at Commerzbank mentions that the “USD/JPY is slipping back down towards the 200 day moving average at 97.15 which guards the current October low at 96.55 and the seven month support line at 95.82. The picture will remain immediately bearish while USD/JPY remains below this week’s high at 99.01. Today some low volatility sideways trading seems to be on the cards, though.”
USD/JPY muted today; bears won’t find it that easy as the 200- DMA (97.14) is well supported
The USD/JPY is currently trading sidelines almost unchanged since the kick off of the Asian trading session. However, the cross managed to overcome the 98.00 handle on early Wellington session mostly due to the constant buying demand on behalf of the Japanese importers as well as on the general Japanese currency depicted weakness in other crosses. Traders should focus on whether the 50% recent sharp pullback - after the cross hit the big figure as of 99.00 on profit-taking - will push further downwards the cross or not. All in all, bears would be probably find themselves in very difficult position, as long as the USD/JPY remains far away from the 200-daily SMA at 97.14, as well as from the low as of the 9th October at 96.83 area.
Technical aspects on the USD/JPY
Axel Rudolph, Head Technical Analyst at Commerzbank mentions that the “USD/JPY is slipping back down towards the 200 day moving average at 97.15 which guards the current October low at 96.55 and the seven month support line at 95.82. The picture will remain immediately bearish while USD/JPY remains below this week’s high at 99.01. Today some low volatility sideways trading seems to be on the cards, though.”