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28 Aug 2013
USD/JPY notching fresh highs after, 98.00 region in focus
FXstreet.com (New York) - The USD/JPY foreign exchange rate has found itself in the drivers seat Wednesday morning during US trading, establishing session highs as the USD mood gradually swings.
In the United States, Pending Home Sales (MoM) fell -1.3% in July, missing estimates of +0.2%. Moreover, Pending Home Sales (YoY) grew +10.95% in July, compared to +10.90% previously.
At this juncture, the USD/JPY is now notching fresh highs at 97.78 Wednesday, en route to a robust advance of +0.67% above its opening. Briefing the technicals, the USD/JPY remains capped by resistances at 97.85, onto 98.17, and 98.54, calculates the Danske Research Team.
USD/JPY strategic bias
According to Axel Rudolph, an analyst at Commerzbank, “USD/JPY has seen failure just ahead of the 3 month downtrend, this is located at 99.43. Together with last week’s high at 99.15 it should continue to cap the topside. We are negative short term below here. Currently the 96.73/53 support zone is being tested. It contains the three-month support line and the 61.8% Fibonacci retracement of the June-to-July rise. Below it the current August low at 95.81 and the 78.6% Fibonacci retracement at 95.42 are to be found. Below these lies the five-month support line at 94.97. Over the coming weeks we allow for losses back to the 94.54/93.75 support area. This is where the 200-day moving average and the June low are to be found.”
In the United States, Pending Home Sales (MoM) fell -1.3% in July, missing estimates of +0.2%. Moreover, Pending Home Sales (YoY) grew +10.95% in July, compared to +10.90% previously.
At this juncture, the USD/JPY is now notching fresh highs at 97.78 Wednesday, en route to a robust advance of +0.67% above its opening. Briefing the technicals, the USD/JPY remains capped by resistances at 97.85, onto 98.17, and 98.54, calculates the Danske Research Team.
USD/JPY strategic bias
According to Axel Rudolph, an analyst at Commerzbank, “USD/JPY has seen failure just ahead of the 3 month downtrend, this is located at 99.43. Together with last week’s high at 99.15 it should continue to cap the topside. We are negative short term below here. Currently the 96.73/53 support zone is being tested. It contains the three-month support line and the 61.8% Fibonacci retracement of the June-to-July rise. Below it the current August low at 95.81 and the 78.6% Fibonacci retracement at 95.42 are to be found. Below these lies the five-month support line at 94.97. Over the coming weeks we allow for losses back to the 94.54/93.75 support area. This is where the 200-day moving average and the June low are to be found.”