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19 Feb 2014
USD/JPY challenging the pivot to the upside
FXStreet (Guatemala) - USD/JPY has climbed up from sub the 102 handle and is approaching the mid point through the pivot.
USD/JPY, in a risk off environment, the pair was a steep drift to the downside after meeting supply through 102.70 where the pair managed a high of 102.76 on the spike from 101.80 on yesterday’s business. Lee Hardman, Currency Strategist at The Bank of Tokyo-Mitsubishi UFJ, Ltd explained that the US dollar has continued to weaken modestly in the near-term reflecting building investor concerns over the US economic slowdown in early 2014. He noted that the US dollar weakness extended yesterday following the release of both the weaker than expected Empire manufacturing and NAHB housing market surveys for February. “The NAHB housing market index declined sharply by 10 points to 46 in February recording its largest monthly decline on record. Still we remain confident that the recent economic slowdown in the US and related US dollar weakness will likely prove only temporary. Fed Chair Yellen acknowledged the recent weakness in the US economy in her testimonies to Congress last week but signalled that the Fed still plans to continue gradually tapering QE”.
USD/JPY Levels
The 20 DMA is 102.34, the 50 DMA is 103.42 and the 200 DMA is 100.19. RSI (14) reads 72.02. Supports are ascending from 101.25, 101.38, 101.53 and 101.74. Spot is 102.32 while resistances are 102.43, 102.76, 102.94 and 103.78.
USD/JPY, in a risk off environment, the pair was a steep drift to the downside after meeting supply through 102.70 where the pair managed a high of 102.76 on the spike from 101.80 on yesterday’s business. Lee Hardman, Currency Strategist at The Bank of Tokyo-Mitsubishi UFJ, Ltd explained that the US dollar has continued to weaken modestly in the near-term reflecting building investor concerns over the US economic slowdown in early 2014. He noted that the US dollar weakness extended yesterday following the release of both the weaker than expected Empire manufacturing and NAHB housing market surveys for February. “The NAHB housing market index declined sharply by 10 points to 46 in February recording its largest monthly decline on record. Still we remain confident that the recent economic slowdown in the US and related US dollar weakness will likely prove only temporary. Fed Chair Yellen acknowledged the recent weakness in the US economy in her testimonies to Congress last week but signalled that the Fed still plans to continue gradually tapering QE”.
USD/JPY Levels
The 20 DMA is 102.34, the 50 DMA is 103.42 and the 200 DMA is 100.19. RSI (14) reads 72.02. Supports are ascending from 101.25, 101.38, 101.53 and 101.74. Spot is 102.32 while resistances are 102.43, 102.76, 102.94 and 103.78.