Forex: USD/JPY leaking lower during quiet Asia session

FXstreet.com (Barcelona) - The USD/JPY is trading in a narrow range during the Asia session, down 13 pips at 97.78. The pair traded as low as 97.55 last Friday, before finding firm support and edging off the lows later in the day. Trading will be thin in the coming session with both Japan and China closed for holiday. The latest COT report had a few interesting Yen developments worth pointing out.

According to Marc Chandler, Global Head of Currency Strategy at BBH, “There were mostly minor position adjustments in the most recent reporting week. Only the gross short yen positions and gross long Australian dollar positions were adjusted by more than 10k contracts. He went on to add, “The net short yen position is the smallest since early March. The gross short yen position is the smallest since late January.”

From a technical perspective, the pair remains in a large trading range on the daily chart as the 100 level once again proved too be firm resistance. Initial support comes in at 97.55 (low price from April 26th), followed 96.60 (previous resistance, now support on daily chart). First resistance comes in at 98.83 (the 9dma), followed by 100 (upper end of trading range). Short term moving averages are now in neutral set up, with price between both the 9 and 20 dma’s. The RSI (14) is displaying a lack of momentum as it consolidates around the 53 level. Until the market can build value above 100, or below 96.60, expect conditions to remain choppy.