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28 Mar 2014
USD/JPY anchored on 102 ahead if key data
FXStreet (Guatemala) - USD/JPY had been threatening the downside but appears to be drifting up with intentions for higher while traders line up awaiting key data release from Japan.
USD/JPY traders will be going with the pair one way or another depending on a mixed bag of releases all at 11.30GMT and 11.50GMT.
Japan data ahead – previous / expectations
National Consumer Price Index (YoY) (Feb) 1.4% (previous), Overall Household Spending (YoY) (Feb) 0.9 (exp), Unemployment Rate (Feb), (3.7% exp) Retail Trade (YoY) (Feb) (3.2% exp)
USD/JPY—Risk, Fiscal Year-end, Taxes
The general consensus in markets is for a weaker Yen with the looming tax hike on April 1st and the BoJ’s need to possibly act on rates. Strategists at TD Securities explained there are implications of the Japanese fiscal year-end. “The March 31 fiscal year-end and the first stage of a two-step rise in the sales tax (from 5% to 8%) that will be implemented on April 1. The fiscal year-end usually conjures up thoughts of repatriation flows boosting the JPY”…however they added… "the impact of repatriation flows on the currency looks to be marginal at best”.
USD/JPY Levels
The 20 DMA is 102.25, the 50 DMA is 102.46 and the 200 DMA is 100.53. RSI (14) reads 53.76. Supports are 101.27, 101.49, 101.67 and 101.83. Spot is 102.19 while resistances are 102.26, 102.49,102.69 and 102.86.
USD/JPY traders will be going with the pair one way or another depending on a mixed bag of releases all at 11.30GMT and 11.50GMT.
Japan data ahead – previous / expectations
National Consumer Price Index (YoY) (Feb) 1.4% (previous), Overall Household Spending (YoY) (Feb) 0.9 (exp), Unemployment Rate (Feb), (3.7% exp) Retail Trade (YoY) (Feb) (3.2% exp)
USD/JPY—Risk, Fiscal Year-end, Taxes
The general consensus in markets is for a weaker Yen with the looming tax hike on April 1st and the BoJ’s need to possibly act on rates. Strategists at TD Securities explained there are implications of the Japanese fiscal year-end. “The March 31 fiscal year-end and the first stage of a two-step rise in the sales tax (from 5% to 8%) that will be implemented on April 1. The fiscal year-end usually conjures up thoughts of repatriation flows boosting the JPY”…however they added… "the impact of repatriation flows on the currency looks to be marginal at best”.
USD/JPY Levels
The 20 DMA is 102.25, the 50 DMA is 102.46 and the 200 DMA is 100.53. RSI (14) reads 53.76. Supports are 101.27, 101.49, 101.67 and 101.83. Spot is 102.19 while resistances are 102.26, 102.49,102.69 and 102.86.