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5 Jun 2014
USD/JPY: Risk to the downside limited - FXStreet
FXStreet (Bali) - Valeria Bednarik, Chief Analyst at FXStreet, takes a look at the USD/JPY, noting that while an important resistance is not far ahead, risks to the downside remain limited ahead of the US NFP on Friday.
Key Quotes
"After posting a daily high of 102.79, the USD/JPY eased on the back of disappointing US trade balance and ADP numbers, but the retracement was not enough to go through 102.50 area, now turned into immediate short term support."
"Consolidating near the highs, the pair may remain reluctant to move also on Thursday, and keep the wait and see stance until US NFP data on Friday."
"Technically, the short term picture is slightly positive, as indicators corrected overbought readings and are now aiming higher around their midlines, while the 4 hours chart shows indicators still heading north, which keeps the risk to the downside limited. Above 103.05, the pair can rally up to 103.50 area, while a break below 102.20 is now required to discourage bulls and see another leg down."
Key Quotes
"After posting a daily high of 102.79, the USD/JPY eased on the back of disappointing US trade balance and ADP numbers, but the retracement was not enough to go through 102.50 area, now turned into immediate short term support."
"Consolidating near the highs, the pair may remain reluctant to move also on Thursday, and keep the wait and see stance until US NFP data on Friday."
"Technically, the short term picture is slightly positive, as indicators corrected overbought readings and are now aiming higher around their midlines, while the 4 hours chart shows indicators still heading north, which keeps the risk to the downside limited. Above 103.05, the pair can rally up to 103.50 area, while a break below 102.20 is now required to discourage bulls and see another leg down."