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19 May 2014
USD/JPY’s key factors
FXStreet (Guatemala) - USD/JPY is trading at 101.29, down -0.21% on the day, having posted a daily high at 101.61 and low at 101.10.
USD/JPY is awaiting the BoJ of this week, although there are of course other crucial events and fundamentals to take key notes for. Jane Foley, Senior Currency Strategist at FXStreet explained, the first is geo-political risk. “There is currently a risk that investors are treating the crisis in Ukraine with too much complacency. Further deteriorating in the region could lead to safe haven demand for the yen. Also, crucial for the direction for USD/JPY will be the ability of the USD to launch a broad based recovery. The greenback has been out of favour this year as the market become accustomed to the fact that although the Fed is tapering the size of its QE programme that actual tightening remains some way away. That said, we expect structural improvements in the US economy to enhance demand for the USD medium-term. While USD/JPY may remain on the back foot in the near-term, by year end we expect a crawl towards USD/JPY 105 to be evident”.
USD/JPY Levels
Spot is presently trading at 101.29, and next resistance can be seen at 101.33 (Hourly 20 EMA), 101.35 (Daily Classic S1), 101.36 (Yesterday's Low), 101.50 (Monthly Low) and 101.50 (Weekly Low). Support below can be found at 101.20 (Daily 200 SMA), 101.19 (Daily Classic S2), 101.10 (Daily Low), 101.08 (Weekly Classic S1) and 101.02
(Daily Classic S3).
USD/JPY is awaiting the BoJ of this week, although there are of course other crucial events and fundamentals to take key notes for. Jane Foley, Senior Currency Strategist at FXStreet explained, the first is geo-political risk. “There is currently a risk that investors are treating the crisis in Ukraine with too much complacency. Further deteriorating in the region could lead to safe haven demand for the yen. Also, crucial for the direction for USD/JPY will be the ability of the USD to launch a broad based recovery. The greenback has been out of favour this year as the market become accustomed to the fact that although the Fed is tapering the size of its QE programme that actual tightening remains some way away. That said, we expect structural improvements in the US economy to enhance demand for the USD medium-term. While USD/JPY may remain on the back foot in the near-term, by year end we expect a crawl towards USD/JPY 105 to be evident”.
USD/JPY Levels
Spot is presently trading at 101.29, and next resistance can be seen at 101.33 (Hourly 20 EMA), 101.35 (Daily Classic S1), 101.36 (Yesterday's Low), 101.50 (Monthly Low) and 101.50 (Weekly Low). Support below can be found at 101.20 (Daily 200 SMA), 101.19 (Daily Classic S2), 101.10 (Daily Low), 101.08 (Weekly Classic S1) and 101.02
(Daily Classic S3).