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24 Feb 2014
USD/JPY upside limited
FXStreet (Córdoba) - The recovery of the USD/JPY was tempered by disappointing US data and stalled at the 102.60 area during the American session.
A negative reading of the Chicago Fed National Activity Index followed by a decline in the US Markit Services PMI kept the USD/JPY constrained. The pair pulled back somewhat after reaching 102.60 and it is currently trading at the 102.50 area, virtually unchanged since opening.
USD/JPY technical outlook
"The hourly chart shows indicators heading higher still in negative territory after reaching oversold levels, while price holds above its 100 SMA after bouncing around 200 one", says Valeria Bednarik, chief analyst at FXStreet. "In the 4 hours chart technical indicators present a bullish tone, yet 102.80 remains a strong static resistance area, and unless a clear advance beyond it, the upside will remain limited".
A negative reading of the Chicago Fed National Activity Index followed by a decline in the US Markit Services PMI kept the USD/JPY constrained. The pair pulled back somewhat after reaching 102.60 and it is currently trading at the 102.50 area, virtually unchanged since opening.
USD/JPY technical outlook
"The hourly chart shows indicators heading higher still in negative territory after reaching oversold levels, while price holds above its 100 SMA after bouncing around 200 one", says Valeria Bednarik, chief analyst at FXStreet. "In the 4 hours chart technical indicators present a bullish tone, yet 102.80 remains a strong static resistance area, and unless a clear advance beyond it, the upside will remain limited".