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6 Aug 2013
USD/JPY heading back down towards Wednesday’s low at 97.58
FXstreet.com (Barcelona) - The USD/JPY was rejected at 99.61 resistance Thursday and Friday and now appears to be on a track to the downside that may lead to the 95.88 – 96.57 range.
Better ISM Services and Fed’s hawkish chatter couldn’t help USD/JPY
Monday in the US saw a better ISM services data and the Federal Reserve’s Richard Fischer speaking in a more hawkish tone than most market-watchers had anticipated. Despite both potentially Dollar-bullish items, both the DXY and the USD/JPY fell throughout the session starting right at 14:30 GMT.
When something trades in the opposite direction of the “intuitive trade”, it tends to catch the eye of the technical crowd.
USD/JPY technical outlook
Technicians who have been calling for more downside in USD/JPY were emboldened temporarily by the bearish reaction to the US news Monday. Some technicians are calling for continued downside to the 95.88 – 96.57 target range for this move. First support, however, comes in at last Wednesday’s low of 97.58. Resistance for USD/JPY comes in at Monday’s high of 99.14 and is followed by Friday’s high of 99.94.
Better ISM Services and Fed’s hawkish chatter couldn’t help USD/JPY
Monday in the US saw a better ISM services data and the Federal Reserve’s Richard Fischer speaking in a more hawkish tone than most market-watchers had anticipated. Despite both potentially Dollar-bullish items, both the DXY and the USD/JPY fell throughout the session starting right at 14:30 GMT.
When something trades in the opposite direction of the “intuitive trade”, it tends to catch the eye of the technical crowd.
USD/JPY technical outlook
Technicians who have been calling for more downside in USD/JPY were emboldened temporarily by the bearish reaction to the US news Monday. Some technicians are calling for continued downside to the 95.88 – 96.57 target range for this move. First support, however, comes in at last Wednesday’s low of 97.58. Resistance for USD/JPY comes in at Monday’s high of 99.14 and is followed by Friday’s high of 99.94.