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2 Oct 2013
USD/JPY up mildly late Tuesday after a bearish reversal earlier in the session
FXstreet.com (Barcelona) - The USD/JPY caught a bid Tuesday after trading sharply lower earlier in the session. The shift from “risk-off” to “risk-on” shifted money out of the Yen, but then better US data provided the cross with an additional tailwind.
Traders trying their best to focus on fundamentals
The global trading community decided it was time to ignore the DC follies and instead focus on real economic forces and data. The data in the case of the USD/JPY Tuesday was the better-than-expected US ISM Manufacturing Index. That combined with what appeared to be a technical-induced risk rally to push the USD/JPY higher (due to the flight from the Yen).
USD/JPY traders will get to trade around the ISM New York Index, the ADP Employment Report and US Construction Spending on Wednesday. Additionally, all eyes will be trained directly on Ben Bernanke as he delivers a speech later in the US session – although with the goings on in DC, nobody is expecting anything approaching hawkishness from him.
Technical outlook for USD/JPY
Technicians are eyeing the 97.39 level as the next step lower on the staircase if possible support levels for USD/JPY if the cross closes below 97.76. Resistance will be Friday’s close of 98.21 with 98.72 – the Tuesday intraday peak - above that.
Traders trying their best to focus on fundamentals
The global trading community decided it was time to ignore the DC follies and instead focus on real economic forces and data. The data in the case of the USD/JPY Tuesday was the better-than-expected US ISM Manufacturing Index. That combined with what appeared to be a technical-induced risk rally to push the USD/JPY higher (due to the flight from the Yen).
USD/JPY traders will get to trade around the ISM New York Index, the ADP Employment Report and US Construction Spending on Wednesday. Additionally, all eyes will be trained directly on Ben Bernanke as he delivers a speech later in the US session – although with the goings on in DC, nobody is expecting anything approaching hawkishness from him.
Technical outlook for USD/JPY
Technicians are eyeing the 97.39 level as the next step lower on the staircase if possible support levels for USD/JPY if the cross closes below 97.76. Resistance will be Friday’s close of 98.21 with 98.72 – the Tuesday intraday peak - above that.