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20 Feb 2014
USD/JPY descending under the force of gravity
FXstreet.com (Moscow) – USD/JPY took another slide down on Nikkei moves, and economic data reaching 101.80 area by the moment.
USD/JPY is still floating
The pair is again under pressure, as Japanese trade deficit broke records again, and HSBC manufacturing PMI from China triggered the risk aversion. Nikkei closed down -2.15% at 14,449, and the yen reached 2-days low at 101.77. Nevertheless, the pair is still surprisingly resilient despite the series of disappointments from US data. Today we are going to see another test for the USD, as the CPI numbers and Philly Fed Manufacturing Index are scheduled for release. The long row of worse than expected data hasn’t killed the American currency yet, but weaker than expected inflation data is able to do it. The market already started to doubt the current pace of tapering from FED will continue, and slower CPI may only strengthen the concerns. If so, wait for another series of sell-off with initial target at 101.55 support level.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 102.19, with support below at 101.90, 101.55 and 101.26, with resistance above at 102.54, 103.83, and 103.18. Hourly Moving Averages are bearish, with the 200SMA at 102.19 and the daily 20EMA at 102.45. Hourly RSI is neutral at 38.
USD/JPY is still floating
The pair is again under pressure, as Japanese trade deficit broke records again, and HSBC manufacturing PMI from China triggered the risk aversion. Nikkei closed down -2.15% at 14,449, and the yen reached 2-days low at 101.77. Nevertheless, the pair is still surprisingly resilient despite the series of disappointments from US data. Today we are going to see another test for the USD, as the CPI numbers and Philly Fed Manufacturing Index are scheduled for release. The long row of worse than expected data hasn’t killed the American currency yet, but weaker than expected inflation data is able to do it. The market already started to doubt the current pace of tapering from FED will continue, and slower CPI may only strengthen the concerns. If so, wait for another series of sell-off with initial target at 101.55 support level.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 102.19, with support below at 101.90, 101.55 and 101.26, with resistance above at 102.54, 103.83, and 103.18. Hourly Moving Averages are bearish, with the 200SMA at 102.19 and the daily 20EMA at 102.45. Hourly RSI is neutral at 38.