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4 Mar 2014
USD/JPY retaining safe haven status
FXStreet (Guatemala) - Rabobank analysts explained that While liquidity levels are high in the yen, Japan’s poor fiscal position and weakened current account position may in time impact its safe haven role, though there is no question that the yen retains a key safe haven role at present.
USD/JPY remains in a tight range on 101.40 currently. Karen Jones at Commerzbank explained that the USD/JPY’s breaching of the 3-month support line has left it on the defensive. “At this stage with the topside still capped by the 55 day ma at 103.26 we remain unable to rule out a re-test of the 100.75 February low and the 100.19 200 day ma”. Shr explained that the resistance at 103. 26 guards 104.45 en route to the more important 105.45/50 recent high and long term Fibo. “We have a multitude of supports between 101 and 100, we look for this ‘zone’ to under pin. This area is also reinforced by the 55 week ma at 99.56”. Ivan Delgado who is the Head of Asian Editors at FXStreet explained, “The month of March presents a more convincing bearish picture than Feb did, as USD/JPY finally establishes its price below the daily ichimoku cloud, in sympathy with the same reaffirmed bearish picture in the Nikkei 225. Both markets also see price currently trading below the tenkan/kijun lines, suggesting bounces should see solid selling interest”.
USD/JPY Levels
The 20 DMA is 102.11, the 50 DMA is 103.26 and the 200 DMA is 100.18. RSI (14) reads 46.76. Supports are 100.62, 100.76, 101.07 and 101.25. Spot is 101.43 while resistances are 101.67, 101.87, 102.00 and 102.15.
USD/JPY remains in a tight range on 101.40 currently. Karen Jones at Commerzbank explained that the USD/JPY’s breaching of the 3-month support line has left it on the defensive. “At this stage with the topside still capped by the 55 day ma at 103.26 we remain unable to rule out a re-test of the 100.75 February low and the 100.19 200 day ma”. Shr explained that the resistance at 103. 26 guards 104.45 en route to the more important 105.45/50 recent high and long term Fibo. “We have a multitude of supports between 101 and 100, we look for this ‘zone’ to under pin. This area is also reinforced by the 55 week ma at 99.56”. Ivan Delgado who is the Head of Asian Editors at FXStreet explained, “The month of March presents a more convincing bearish picture than Feb did, as USD/JPY finally establishes its price below the daily ichimoku cloud, in sympathy with the same reaffirmed bearish picture in the Nikkei 225. Both markets also see price currently trading below the tenkan/kijun lines, suggesting bounces should see solid selling interest”.
USD/JPY Levels
The 20 DMA is 102.11, the 50 DMA is 103.26 and the 200 DMA is 100.18. RSI (14) reads 46.76. Supports are 100.62, 100.76, 101.07 and 101.25. Spot is 101.43 while resistances are 101.67, 101.87, 102.00 and 102.15.