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6 Sep 2013
USD/JPY, hits 98.54 daily bottoms to snap back above 99.00 zone
FXstreet.com (Chicago) - USD/JPY accumulates 0.85% daily losses so far after the release of disappointing NFP data in the US and the increase in tension of the Syrian conflict with Russian comments prior to the American trading session closing.
Moderate and modest economic recoveries
The US and Japan seem to be in the road to recovery after the 2008 global crisis. Modest results indicate there is still work to be done from the monetary and political side as both countries have announced major changes (Japan and its tax hike and the US Fed’s tapering). The focus of interest comes back to Syria as market participants, risk-averse by potential fast and unpredictable market movements weigh in money management and asset allocation strategies. With the most recent commentaries by Russia on Syrian back-up if the US strikes, the pair was dragged down but managed to bounce off lows and consolidate above the 99.00 zone.
USD/JPY Technical Levels
Price action reveals that the upward trendline starting on August 27th was violated today after earlier plunge on NFP data and Russian comments about Syria back-up if the US strikes militarily. The pair plunged to 98.54 daily lows (50% Fibonacci retracement from highs starting on August 27th lows) to bounce off strong above the 99.00 zone and trade at 99.22 between supports at 99.20 (September 4th lows), 98.80 (August 27th highs) ahead of 98.42 (September 2nd lows) and resistances at 99.67 (September 2nd highs), 99.97 (September 4th highs) followed by 100.22 (September 5th highs). According to the FXstreet.com trend index, the pair is strongly bearish on one-hour timeframe analysis and remains trading below the EMA20.
Moderate and modest economic recoveries
The US and Japan seem to be in the road to recovery after the 2008 global crisis. Modest results indicate there is still work to be done from the monetary and political side as both countries have announced major changes (Japan and its tax hike and the US Fed’s tapering). The focus of interest comes back to Syria as market participants, risk-averse by potential fast and unpredictable market movements weigh in money management and asset allocation strategies. With the most recent commentaries by Russia on Syrian back-up if the US strikes, the pair was dragged down but managed to bounce off lows and consolidate above the 99.00 zone.
USD/JPY Technical Levels
Price action reveals that the upward trendline starting on August 27th was violated today after earlier plunge on NFP data and Russian comments about Syria back-up if the US strikes militarily. The pair plunged to 98.54 daily lows (50% Fibonacci retracement from highs starting on August 27th lows) to bounce off strong above the 99.00 zone and trade at 99.22 between supports at 99.20 (September 4th lows), 98.80 (August 27th highs) ahead of 98.42 (September 2nd lows) and resistances at 99.67 (September 2nd highs), 99.97 (September 4th highs) followed by 100.22 (September 5th highs). According to the FXstreet.com trend index, the pair is strongly bearish on one-hour timeframe analysis and remains trading below the EMA20.