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28 Aug 2013
USD/JPY moves higher ahead of US pending home sales
FXstreet.com (Athens): The USD/JPY is trading higher today, despite military strike jitters.
Will US pending home sales be a “taper on, dollar strong” sign?
The pair found itself fell apart yesterday, as investors sought safe havens from rising geopolitical tension, with an attack by Western powers on Syria seen imminent. Today, on Wednesday European trading session and amidst, new rhetoric and rising odds of a military strike on Syria on behalf of Iran, Russia and Great Britain, the pair manages to move on the upper side. Pending home sales from the US are due out today and are set to give yet another indication of the condition of the US housing market. The number is expected to show a small decline and so anything around this could give dollar bulls a little something to go with since negative economic data in the US decreases the chances of tapering.
Technical outlook on USD/JPY
According to Tim Riddell, Head of Global Markets Research in ANZ team, ‘USD/JPY remains the key driver. Current range trading (96-103) is seen as constructive in the context of an underlying
Bias is buy into USD/JPY weakness for a retest of recent highs’. At the time of writing, the pair is trading at 97.36 area, up 0.34%. The FXstreet.com Trend Index shows the pair to be slightly bearish. Daily pivot point support can be found at 97.50, 96.23, 95.75 and resistance at 98.94, 99.14 and 99.43, respectively.
Will US pending home sales be a “taper on, dollar strong” sign?
The pair found itself fell apart yesterday, as investors sought safe havens from rising geopolitical tension, with an attack by Western powers on Syria seen imminent. Today, on Wednesday European trading session and amidst, new rhetoric and rising odds of a military strike on Syria on behalf of Iran, Russia and Great Britain, the pair manages to move on the upper side. Pending home sales from the US are due out today and are set to give yet another indication of the condition of the US housing market. The number is expected to show a small decline and so anything around this could give dollar bulls a little something to go with since negative economic data in the US decreases the chances of tapering.
Technical outlook on USD/JPY
According to Tim Riddell, Head of Global Markets Research in ANZ team, ‘USD/JPY remains the key driver. Current range trading (96-103) is seen as constructive in the context of an underlying
Bias is buy into USD/JPY weakness for a retest of recent highs’. At the time of writing, the pair is trading at 97.36 area, up 0.34%. The FXstreet.com Trend Index shows the pair to be slightly bearish. Daily pivot point support can be found at 97.50, 96.23, 95.75 and resistance at 98.94, 99.14 and 99.43, respectively.