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17 Oct 2014
USD/JPY remains bearish
FXStreet (Barcelona) - USD/JPY is trading at 106.72, up 0.37% on the day, having posted a daily high at 106.80 and low at 106.13.
With risk sentiment being the main driver of this pair, it is just 150 points better off from the lows of this week from falling from the 107.50 level. The pair has been moving in a tight range in this closing session and buoyed only by the improvement in housing starts from the US and the Reuters/Michigan Consumer Sentiment Index (Oct) Preliminar that arrived 86.4, vs 84.1 consensus and better than previous 84.6. Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank explained that the "USD/JPY short‐term technical are bearish. “All studies are still warning of downside risk. A close above Wednesday’s open of 107.05 would shift this to a more bullish outlook. Failure to close above 107.05 in the next few sessions will warn more strongly of downside risk”.
USD/JPY noteworthy levels
With spot trading at 106.73, we can see next resistance ahead at 106.83 (Weekly Classic S1), 107.08 (Daily Classic R2), 107.30 (Hourly 200 SMA) and 107.55 (Daily 20 SMA). Support below can be found at 106.71 (Daily Classic R1), 106.64 (Hourly 100 SMA), 106.48, 106.39 (Hourly 20 EMA) and 106.35.
With risk sentiment being the main driver of this pair, it is just 150 points better off from the lows of this week from falling from the 107.50 level. The pair has been moving in a tight range in this closing session and buoyed only by the improvement in housing starts from the US and the Reuters/Michigan Consumer Sentiment Index (Oct) Preliminar that arrived 86.4, vs 84.1 consensus and better than previous 84.6. Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank explained that the "USD/JPY short‐term technical are bearish. “All studies are still warning of downside risk. A close above Wednesday’s open of 107.05 would shift this to a more bullish outlook. Failure to close above 107.05 in the next few sessions will warn more strongly of downside risk”.
USD/JPY noteworthy levels
With spot trading at 106.73, we can see next resistance ahead at 106.83 (Weekly Classic S1), 107.08 (Daily Classic R2), 107.30 (Hourly 200 SMA) and 107.55 (Daily 20 SMA). Support below can be found at 106.71 (Daily Classic R1), 106.64 (Hourly 100 SMA), 106.48, 106.39 (Hourly 20 EMA) and 106.35.