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26 Feb 2014
USD/JPY in highs near 102.40
FXStreet (Edinburgh) - The USD/JPY is edging higher on Wednesday, hovering over session highs in the proximity of 102.35/40.
USD/JPY focus on CPI data
It is a fairly light week data-wise in Japan, although the release of the inflation figures tomorrow would prove to be crucial for the pair. Market consensus expects the National CPI (excluding Fresh Food costs) to have expanded 1.2% on a year to February, a tad lower than January’s 1.3% increment. Further releases comprise January’s unemployment (3.7% exp.) and industrial Production (3.0% MoM exp.). “Trend strength signals are flat, suggesting a neutral bias in the market and more range trading ahead. The market should pick up a little more directional momentum either above 102.85/90 or below 101.60/70”, argued Shaun Osborne, Chief FX Strategist at TD Securities.
USD/JPY levels to watch
The pair is now advancing 0.16% at 102.35 facing the initial resistance at 102.68 (high Feb.24) followed by 102.80 (Kijun Sen) and then 102.83 (high Feb.21). On the flip side, a break below 102.00 (low Feb.25) would open the door to 101.67 (low Feb.20) and finally 101.38 (low Feb.17).
USD/JPY focus on CPI data
It is a fairly light week data-wise in Japan, although the release of the inflation figures tomorrow would prove to be crucial for the pair. Market consensus expects the National CPI (excluding Fresh Food costs) to have expanded 1.2% on a year to February, a tad lower than January’s 1.3% increment. Further releases comprise January’s unemployment (3.7% exp.) and industrial Production (3.0% MoM exp.). “Trend strength signals are flat, suggesting a neutral bias in the market and more range trading ahead. The market should pick up a little more directional momentum either above 102.85/90 or below 101.60/70”, argued Shaun Osborne, Chief FX Strategist at TD Securities.
USD/JPY levels to watch
The pair is now advancing 0.16% at 102.35 facing the initial resistance at 102.68 (high Feb.24) followed by 102.80 (Kijun Sen) and then 102.83 (high Feb.21). On the flip side, a break below 102.00 (low Feb.25) would open the door to 101.67 (low Feb.20) and finally 101.38 (low Feb.17).