Back
12 Aug 2013
USD/JPY extends the correction
FXstreet.com (Edinburgh) -The USD is easing some ground on Monday after lifting the USD/JPY to fresh intraday highs around 96.90.
USD/JPY hurt by data
The Japanese yen managed to leave behind the disappointing data from the Annualized GDP, expanding 2.6% during the second quarter vs. 3.6% expected. Further data also showed that Machine Tool Orders contracted at an annual pace of 12.1% during July. “Moderate scale Japanese net buying of foreign bonds isn’t enough to counter nerves over Japan-China tensions and Nikkei vulnerability to fears that PM Abe’s "third arrow" of reform will never really be fired. "Obon" week should keep volume light, with scope for USD/JPY to dip as far as 94/95. This is a dip we would look to buy”, assessed analysts at Westpac Global Strategy Group.
USD/JPY levels to watch
The pair is now up 0.24% at 96.54 with the next resistance at 96.98 (high Aug.9) ahead of 97.50 (low Aug.6) and then 97.80 (high Aug.7). On the downside, a break below 95.92 (low Aug.12) would target 95.81 (low Aug.8) en route to 95.80 (high Jun.14).
USD/JPY hurt by data
The Japanese yen managed to leave behind the disappointing data from the Annualized GDP, expanding 2.6% during the second quarter vs. 3.6% expected. Further data also showed that Machine Tool Orders contracted at an annual pace of 12.1% during July. “Moderate scale Japanese net buying of foreign bonds isn’t enough to counter nerves over Japan-China tensions and Nikkei vulnerability to fears that PM Abe’s "third arrow" of reform will never really be fired. "Obon" week should keep volume light, with scope for USD/JPY to dip as far as 94/95. This is a dip we would look to buy”, assessed analysts at Westpac Global Strategy Group.
USD/JPY levels to watch
The pair is now up 0.24% at 96.54 with the next resistance at 96.98 (high Aug.9) ahead of 97.50 (low Aug.6) and then 97.80 (high Aug.7). On the downside, a break below 95.92 (low Aug.12) would target 95.81 (low Aug.8) en route to 95.80 (high Jun.14).