25 Sep 2013
USD/JPY under pressure ahead of US durable goods data
FXstreet.com (Athens)- The USD/JPY is trading on the downwards for a fourth consecutive day ahead of the very crucial US durable goods data which are expected to contract another 0.2% in August.
The USD/JPY falling on US budget blues and ahead of US data
The USD/JPY is heading on the down side since the very early start in the Asia opening trading session, as the greenback rebounds across the board ahead of the durable goods data. Elaborating on, as widely known the slowdown in private sector consumption- as it can be depicted by durable goods data- may drag on the dollar as it limits the Fed’s scope to taper the asset-purchase program at the October 29-30 meeting. Therefore the American dollar is now under a heavy pressure due to the fact that the durable goods data are expected to contract another 0.2% in August. Traders should bear in mind, that data highlighting a slower recovery may prompt the central bank to further delay the exit strategy and mostly, dismal print may trigger a bearish reaction in the American dollar.
Technical Outlook and Strategic Bias on USD/JPY
Emmanuel Ng of OCBC Bank, mentions that “the USD/JPY may remain under the weather amid broad based uncertainty in the short term with investors now increasingly skittish towards the JPY-crosses. Expect resistance for the USD-JPY around the 99.00/10 area and if the 55-day MA (98.69) is punctured, a drift towards 98.25 cannot be discounted.”
The USD/JPY falling on US budget blues and ahead of US data
The USD/JPY is heading on the down side since the very early start in the Asia opening trading session, as the greenback rebounds across the board ahead of the durable goods data. Elaborating on, as widely known the slowdown in private sector consumption- as it can be depicted by durable goods data- may drag on the dollar as it limits the Fed’s scope to taper the asset-purchase program at the October 29-30 meeting. Therefore the American dollar is now under a heavy pressure due to the fact that the durable goods data are expected to contract another 0.2% in August. Traders should bear in mind, that data highlighting a slower recovery may prompt the central bank to further delay the exit strategy and mostly, dismal print may trigger a bearish reaction in the American dollar.
Technical Outlook and Strategic Bias on USD/JPY
Emmanuel Ng of OCBC Bank, mentions that “the USD/JPY may remain under the weather amid broad based uncertainty in the short term with investors now increasingly skittish towards the JPY-crosses. Expect resistance for the USD-JPY around the 99.00/10 area and if the 55-day MA (98.69) is punctured, a drift towards 98.25 cannot be discounted.”