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13 Aug 2013
USD/JPY in highs around 98.00
FXstreet.com (Edinburgh) -The USD/JPY is extending its correction higher on Tuesday, printing multi-day highs around 98.00 the figure.
USD/JPY bounced off sub 96.00
Traders quickly left behind the disappointment after the Japanese Annualized GDP for the second quarter, and seems the focus is now on the likeliness of a reduction in a corporate tax, as a way to counteract the negative implications of a sales tax hike in April by increasing the consumer confidence. The tone regarding the BoJ minutes was muted. According to G.Moore and S.Osborne, Strategists at TD Securities, “Seasonal patterns turn JPY-supportive August through November and are especially strong historically in August (more consistent and more powerful moves in the last 20 years). We think 95.01 is major support now (potential Had & Shoulders trigger). Resistance is 97.60”.
USD/JPY critical levels
As of writing the pair is up 1.15% at 98.02 with the next hurdle at 98.56 (Kijun Sen line) ahead of 98.60 (cloud base) and then 98.75 (cloud top). On the downside, a break below 96.88 (low Aug.13) would aim for 95.92 (low Aug.12) and finally 95.81 (low Aug.8).
USD/JPY bounced off sub 96.00
Traders quickly left behind the disappointment after the Japanese Annualized GDP for the second quarter, and seems the focus is now on the likeliness of a reduction in a corporate tax, as a way to counteract the negative implications of a sales tax hike in April by increasing the consumer confidence. The tone regarding the BoJ minutes was muted. According to G.Moore and S.Osborne, Strategists at TD Securities, “Seasonal patterns turn JPY-supportive August through November and are especially strong historically in August (more consistent and more powerful moves in the last 20 years). We think 95.01 is major support now (potential Had & Shoulders trigger). Resistance is 97.60”.
USD/JPY critical levels
As of writing the pair is up 1.15% at 98.02 with the next hurdle at 98.56 (Kijun Sen line) ahead of 98.60 (cloud base) and then 98.75 (cloud top). On the downside, a break below 96.88 (low Aug.13) would aim for 95.92 (low Aug.12) and finally 95.81 (low Aug.8).