Back
15 Aug 2013
USD/JPY surrenders grip on 98.00 level as fresh vulnerability surfaces
FXstreet.com (New York) - The USD/JPY foreign exchange rate turned lower Thursday morning at the Tokyo opening, with the JPY exerting early pressure on the USD during Asian trading.
Presently, the USD/JPY is now turning lower, having moved to 97.91 after trading as low as 97.77 (daily low) in recent minutes. According to market sources, stops were triggered in the USD/JPY following a failure by US Treasury yields to extend gains on Wednesday. Vulnerable longs with stops below 97.86 were subsequently triggered. In other news, the Nikkei has opened staunchly lower, which may put pressure on the JPY.
USD/JPY strategic bias
According to Jim Langlands at FX Charts, “On the topside, above 98.40, the 200-day MA lies at 98.68. A sustained move above here would see a move towards 99.00 and eventually 100.00. There are plenty of sellers lined up at the higher levels and I would really be quite surprised to see the dollar trade much above the 200-day MA today (though the recent Nikkei performance has challenged this). On the downside, 97.90 is the immediate support. Below this further bids are likely at 97.75 and then 97.50. I would be surprised to see it back down here either, but if wrong, further bids should be found at 97.20.”
Presently, the USD/JPY is now turning lower, having moved to 97.91 after trading as low as 97.77 (daily low) in recent minutes. According to market sources, stops were triggered in the USD/JPY following a failure by US Treasury yields to extend gains on Wednesday. Vulnerable longs with stops below 97.86 were subsequently triggered. In other news, the Nikkei has opened staunchly lower, which may put pressure on the JPY.
USD/JPY strategic bias
According to Jim Langlands at FX Charts, “On the topside, above 98.40, the 200-day MA lies at 98.68. A sustained move above here would see a move towards 99.00 and eventually 100.00. There are plenty of sellers lined up at the higher levels and I would really be quite surprised to see the dollar trade much above the 200-day MA today (though the recent Nikkei performance has challenged this). On the downside, 97.90 is the immediate support. Below this further bids are likely at 97.75 and then 97.50. I would be surprised to see it back down here either, but if wrong, further bids should be found at 97.20.”