2 Sep 2013
USD/JPY opens higher on Yen weakness but has already started to reverse
FXstreet.com (Barcelona) - The USD/JPY spent Thursday rallying on better US data. But, it fell short of conquering “correction resistance” at 98.52. Today’s opening rally has failed (thus far) to even test that level.
Yen weakness stemming from continuing radiation concerns and prospective tax hike
Whether it was the continued and growing concerns out of Japan regarding the radiation problems in Fukushima or the chatter about Japan’s sales tax hike being on schedule for next year, the Yen opened the week on a weak on – forcing the USD/JPY higher. However, that open has already started to fade as the “safe harbor” status of the Yen is overshadowing the other concerns as Syrian chatter is intensifying – not abating.
Technical outlook for USD/JPY
Technicians are still pointing to the 98.52 level as a short-term key resistance level for USD/JPY. An hourly close above that level will clear the way for a move up to the 8/23 high of 99.42. A failure there, however, will likely lead to a sharp move lower – perhaps to below 96.
Yen weakness stemming from continuing radiation concerns and prospective tax hike
Whether it was the continued and growing concerns out of Japan regarding the radiation problems in Fukushima or the chatter about Japan’s sales tax hike being on schedule for next year, the Yen opened the week on a weak on – forcing the USD/JPY higher. However, that open has already started to fade as the “safe harbor” status of the Yen is overshadowing the other concerns as Syrian chatter is intensifying – not abating.
Technical outlook for USD/JPY
Technicians are still pointing to the 98.52 level as a short-term key resistance level for USD/JPY. An hourly close above that level will clear the way for a move up to the 8/23 high of 99.42. A failure there, however, will likely lead to a sharp move lower – perhaps to below 96.