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30 Sep 2013
USD/JPY starting to weaken after bouncing around after Japanese data
FXstreet.com (Barcelona) - USD/JPY traders are once again starting to give the Yen the edge in the battle of the safety currencies after a post-gap consolidation.
Yen’s safety dominance on display in USD/JPY
USD/JPY traders pushed the cross in different directions for a while following the release of worse-than-expected Japanese industrial production numbers. In a short while, Japanese housing data will also be released. Later Monday, the Chicago PMI will be released in the US.
As long as the safety trade is “on”, both the Yen, the DXY and to a lesser degree the Swiss Franc will see inflows in lieu of the euro, the Aussie Dollar and other “riskier” currencies. However, the Yen continues to be the winner in terms of safe harbor currencies in recent days.
Technical outlook for USD/JPY
Technicians are eyeing the 97.39 level as the next step lower on the staircase if possible support levels for USD/JPY if the cross closes below 97.76. Resistance will be Friday’s close of 98.26 with 99 above that.
Yen’s safety dominance on display in USD/JPY
USD/JPY traders pushed the cross in different directions for a while following the release of worse-than-expected Japanese industrial production numbers. In a short while, Japanese housing data will also be released. Later Monday, the Chicago PMI will be released in the US.
As long as the safety trade is “on”, both the Yen, the DXY and to a lesser degree the Swiss Franc will see inflows in lieu of the euro, the Aussie Dollar and other “riskier” currencies. However, the Yen continues to be the winner in terms of safe harbor currencies in recent days.
Technical outlook for USD/JPY
Technicians are eyeing the 97.39 level as the next step lower on the staircase if possible support levels for USD/JPY if the cross closes below 97.76. Resistance will be Friday’s close of 98.26 with 99 above that.