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1 Apr 2014
USD/JPY – 103.40 resistance is a challenge
FXstreet.com (Moscow) – USD/JPY was quite reserved in the morning despite key Tankan release, but it reached 103.36 session high by the moment.
Several factors of importance
The pair has too many factors of significance for today, and though we already got Tankan survey, the rest variables are still in store. We must pay attention to sales tax increase today, and though it won’t have immediate influence on the Yen, we still should keep in mind, that back in 1997, when the recent tax increase occurred, the pair came under pressure being sold from April till June. Nevertheless, there are other factors that may support the interest to USD/JPY – e.g. US ISM report that may show a significant rebound after the negative weather effect evaporated. And another argument for the pair rise is the beginning of new fiscal year in Japan which means the outflow of recently repatriated capital.
Thus, the odds are in favor of further pair strengthening with initial target at 103.52 resistance level.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 103.15, with support below at 102.85, 102.48 and 102.18 with resistance above at 103.52, 103.82, and 104.19. Hourly Moving Averages are bullish, with the 200SMA at 102.41 and the daily 20EMA at 102.38. Hourly RSI is neutral at 64.
Several factors of importance
The pair has too many factors of significance for today, and though we already got Tankan survey, the rest variables are still in store. We must pay attention to sales tax increase today, and though it won’t have immediate influence on the Yen, we still should keep in mind, that back in 1997, when the recent tax increase occurred, the pair came under pressure being sold from April till June. Nevertheless, there are other factors that may support the interest to USD/JPY – e.g. US ISM report that may show a significant rebound after the negative weather effect evaporated. And another argument for the pair rise is the beginning of new fiscal year in Japan which means the outflow of recently repatriated capital.
Thus, the odds are in favor of further pair strengthening with initial target at 103.52 resistance level.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 103.15, with support below at 102.85, 102.48 and 102.18 with resistance above at 103.52, 103.82, and 104.19. Hourly Moving Averages are bullish, with the 200SMA at 102.41 and the daily 20EMA at 102.38. Hourly RSI is neutral at 64.