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29 Aug 2013
USD/JPY getting slammed on news that Obama is prepared to bypass UN
FXstreet.com (Barcelona) - The USD/JPY has reversed sharply lower on new reports that the Obama Administration will bypass UN procedures and attack Syria.
The Yen is once again seeing inflows as money seeks safe harbor
The Syria news – rather the news about how the US is dealing with Syria – continues to overshadow any and all economic data. The headlines that made the rounds in the last hour had the Obama Administration making clear their intentions to circumvent the UN and Congress and attack Syria sooner than later.
The news immediately put back into effect the “safety trade” that had dominated the markets for a majority of this week. The USD/JPY, which had rallied from 96.81 to 97.89 on hopes that the Syrian situation was getting better – or at least more orderly. When the headlines crossed that things were not going in that direction, the USD/JPY fell from 97.89 to 97.48 and may be headed down to 97.00 (see technical below).
Technical outlook for USD/JPY
The USD/JPY’s long-term outlook continues to be bearish according to technicians. Short-term resistance for USD/JPY comes in at 97.78 in the short-term and 98.04 above that. They have the ultimate downside target at 92.53, but their shorter-term support levels are 97.02 and 96.80.
The Yen is once again seeing inflows as money seeks safe harbor
The Syria news – rather the news about how the US is dealing with Syria – continues to overshadow any and all economic data. The headlines that made the rounds in the last hour had the Obama Administration making clear their intentions to circumvent the UN and Congress and attack Syria sooner than later.
The news immediately put back into effect the “safety trade” that had dominated the markets for a majority of this week. The USD/JPY, which had rallied from 96.81 to 97.89 on hopes that the Syrian situation was getting better – or at least more orderly. When the headlines crossed that things were not going in that direction, the USD/JPY fell from 97.89 to 97.48 and may be headed down to 97.00 (see technical below).
Technical outlook for USD/JPY
The USD/JPY’s long-term outlook continues to be bearish according to technicians. Short-term resistance for USD/JPY comes in at 97.78 in the short-term and 98.04 above that. They have the ultimate downside target at 92.53, but their shorter-term support levels are 97.02 and 96.80.