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15 Apr 2013
Forex: USD/JPY rally stalls out, closes NY Session down 143 pips at 98.35
FXstreet.com (Barcelona) - The USD/JPY rally finally ran out of steam on Friday, closing the New York session down 143 pips at 98.35. On a weekly basis, the pair still managed to finish slightly higher (+0.54%), although well off the highs established earlier in the week at 99.94. Market participants should be aware that later in the session (1:30 GMT), Bank of Japan Governor Kuroda will again be speaking about monetary policy in Tokyo. The pair is currently trading 21 pips higher at 98.48.
“USD/JPY has in fact been the biggest currency mover, dropping over a cent after the US Treasury’s six-monthly currency report warned Japan against competitive devaluation of its currency. Some frustration on the part of
JPY shorts that we failed to crack the ￥100 barrier last week almost certainly added to the sped and scale of the liquidation,” noted NAB Global Markets.
The FXStreet.com Trend Index remains slightly bearish on the 4 hour chart, while the OB/OS index reads neutral. From a longer term perspective, the weekly chart appears to have formed a shooting star candle (bearish), which may also throw caution to some of the Yen shorts going into next week. First support sits at 97.98 (9 DMA), followed by 97.50 (daily pivot low). Resistance comes in at 98.64 (daily pivot point), followed by 99.20 (daily pivot high)
“USD/JPY has in fact been the biggest currency mover, dropping over a cent after the US Treasury’s six-monthly currency report warned Japan against competitive devaluation of its currency. Some frustration on the part of
JPY shorts that we failed to crack the ￥100 barrier last week almost certainly added to the sped and scale of the liquidation,” noted NAB Global Markets.
The FXStreet.com Trend Index remains slightly bearish on the 4 hour chart, while the OB/OS index reads neutral. From a longer term perspective, the weekly chart appears to have formed a shooting star candle (bearish), which may also throw caution to some of the Yen shorts going into next week. First support sits at 97.98 (9 DMA), followed by 97.50 (daily pivot low). Resistance comes in at 98.64 (daily pivot point), followed by 99.20 (daily pivot high)