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7 Oct 2013
USD/JPY on comeback attempts to regain 97 zone; glued to support
FXstreet.com (Chicago) - USD/JPY continues trading super close to the immediate support around the 96.92 zone in the afternoon of the American trading session.
Data recap
On earlier data releases in Japan, the leading economic index for August was 106.5 vs. past 107.9 and expected 106.9. The coincident index for the same month was 107.6 vs. past 107.7 and estimates at 107.6. Ahead of consumer credit change results in the US and amid the US government shutdown that maintains its status, market participants are bearish on US equity stocks. The yen is the strongest currency in relative performance studies up 0.54% against the greenback.
USD/JPY Technical Levels
Price action reveals the extension of a bearish channel and downward trendline that originated last September 10th. Offered at 96.92, the pair oscillates right on the immediate support (October 3rd lows) now facing 96.41 (August 12th lows) ahead of 95.92 (August 10th lows) and the resistances set at 97.44 (October 4th highs), 98.34 (September 25th lows) followed by 99.12 (September 27th highs).
According to FXstreet.com Chief Analyst, Valeria Bednarik, the pair remains below the 97.00 level and in “the 4 hours chart technical readings present a stronger bearish momentum, that support a test of 96.60, 200 DMA and immediate support: a break below this last should signal a stronger bearish continuation, eyeing then 95.80 August monthly low.”
Data recap
On earlier data releases in Japan, the leading economic index for August was 106.5 vs. past 107.9 and expected 106.9. The coincident index for the same month was 107.6 vs. past 107.7 and estimates at 107.6. Ahead of consumer credit change results in the US and amid the US government shutdown that maintains its status, market participants are bearish on US equity stocks. The yen is the strongest currency in relative performance studies up 0.54% against the greenback.
USD/JPY Technical Levels
Price action reveals the extension of a bearish channel and downward trendline that originated last September 10th. Offered at 96.92, the pair oscillates right on the immediate support (October 3rd lows) now facing 96.41 (August 12th lows) ahead of 95.92 (August 10th lows) and the resistances set at 97.44 (October 4th highs), 98.34 (September 25th lows) followed by 99.12 (September 27th highs).
According to FXstreet.com Chief Analyst, Valeria Bednarik, the pair remains below the 97.00 level and in “the 4 hours chart technical readings present a stronger bearish momentum, that support a test of 96.60, 200 DMA and immediate support: a break below this last should signal a stronger bearish continuation, eyeing then 95.80 August monthly low.”