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7 Jan 2014
USD/JPY needs to hold 103.70/80, watch Nikkei 225
FXstreet.com (Bali) - USD/JPY continues to struggle to regain the 105.00 handle, with the last disappointing ISM non-mfg data in the US triggering, yet again, another impulsive sell-off to new weekly lows at 103.90.
Nikkei the usual suspect to set directional bias in Yen crosses
Key for the directional bias of the USD/JPY in Asia, will be as usual, the performance by the Nikkei 225 - down 2.35% Monday - , with its technicals having deteriorated early this year. The decline in US yields - losing the 3% mark - paired with soft equities may weigh in sentiment.
USD/JPY stays below daily tenkan
USD/JPY is presently below the tenkan sen on the daily, yet still supported by a flat 20-day EMA. A loss of 103.80 - stop rumoured below 103.70 - may pave the way for 103.50 - daily kijun - ahead of deeper falls. On the upside, a recovery above the tenkan on the daily - 104.70 - ahead of 105.00 are the two key levels to be reclaimed for bulls to take control on price.
Nikkei the usual suspect to set directional bias in Yen crosses
Key for the directional bias of the USD/JPY in Asia, will be as usual, the performance by the Nikkei 225 - down 2.35% Monday - , with its technicals having deteriorated early this year. The decline in US yields - losing the 3% mark - paired with soft equities may weigh in sentiment.
USD/JPY stays below daily tenkan
USD/JPY is presently below the tenkan sen on the daily, yet still supported by a flat 20-day EMA. A loss of 103.80 - stop rumoured below 103.70 - may pave the way for 103.50 - daily kijun - ahead of deeper falls. On the upside, a recovery above the tenkan on the daily - 104.70 - ahead of 105.00 are the two key levels to be reclaimed for bulls to take control on price.