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22 Oct 2013
USD/JPY higher ahead of NFP
FXstreet.com (Athens) – The USD/JPY is trading near its daily highs as market participants are awaiting the NFP data.
USD/JPY slightly higher ahead of NFP; weak Japanese exports, declining volumes major drivers
The USD/JPY is currently trading near its daily highs amidst the big event of the NFP release. Briefly, the Japanese currency is weakening across the board due to a couple of reasons; first of all, Nikkei gained an even - slight - ground today and as it widely known the correlation between the Japanese currency and the Nikkei is heavily negatively correlated. Apart from that, the US treasury yields seem to recover from their recent 3-month lows pertaining to the 10-year paper. Last but not least, “Abenomics” do not seem to be on a solid track as it have been the previous months; Monday’s data revealed that Japanese inflation is bound to fail without the necessary increase in wages as it is obvious that consumers can't handle the pressure on their disposable income.
Technical Aspects on the USD/JPY
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “USD/JPY remains fairly neutral – we can work up both bullish and bearish arguments.While we note the 200 day ma at 97.24 guards the current October low at 96.55 and the seven month support line at 95.88. We also note that the Elliott wave count on the 240 minute chart and the 60 minute chart are giving completely different indications and for that reason we consider the chart fairly neutral.Rallies will find initial resistance at 99.01/07 – last weeks high and the 61.8% retracement ahead of the 5 month resistance line at 99.48 and the 100.62 September high.”
USD/JPY slightly higher ahead of NFP; weak Japanese exports, declining volumes major drivers
The USD/JPY is currently trading near its daily highs amidst the big event of the NFP release. Briefly, the Japanese currency is weakening across the board due to a couple of reasons; first of all, Nikkei gained an even - slight - ground today and as it widely known the correlation between the Japanese currency and the Nikkei is heavily negatively correlated. Apart from that, the US treasury yields seem to recover from their recent 3-month lows pertaining to the 10-year paper. Last but not least, “Abenomics” do not seem to be on a solid track as it have been the previous months; Monday’s data revealed that Japanese inflation is bound to fail without the necessary increase in wages as it is obvious that consumers can't handle the pressure on their disposable income.
Technical Aspects on the USD/JPY
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “USD/JPY remains fairly neutral – we can work up both bullish and bearish arguments.While we note the 200 day ma at 97.24 guards the current October low at 96.55 and the seven month support line at 95.88. We also note that the Elliott wave count on the 240 minute chart and the 60 minute chart are giving completely different indications and for that reason we consider the chart fairly neutral.Rallies will find initial resistance at 99.01/07 – last weeks high and the 61.8% retracement ahead of the 5 month resistance line at 99.48 and the 100.62 September high.”