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31 Mar 2014
USD/JPY has taken a pause in Asia on Monday
FXStreet (Moscow) - USD/JPY is very quiet early in Asia. The pair has stuck in a narrow 10-pips range as traders are jittery to one fresh positions on the last day of Japanese financial year
What is there after VAT?
This is the last trading day of the financial year in Japan. Tomorrow lots of things will be started anew: new balance sheets, new investment plans, new VAT after all. Many investors are afraid that this higher tax will affect consumer and business sentiments and undermine fragile economic recovery, so they scan the statistics for confirmation. Industrial production data was horrid as it dropped 2.3% m/m against expected growth of 3.6% and +3.8% in January, according to the official report published earlier. But the investors kept calm. Later today we are waiting for housing starts and construction orders, weak numbers may put the Japanese currency under pressure, though we don’t believe the impetus would be strong enough to take USD/JPY above 103.00. The failed attempt their may cause the downside correction that is likely to be limited by 102.30.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 102.62, with support below at 102.24, 101.66 and 101.28 with resistance above at 103.20, 103.58, and 104.16. Hourly Moving Averages are bullish, with the 200SMA at 102.20 and the daily 20EMA at 102.29. Hourly RSI is neutral at 68
What is there after VAT?
This is the last trading day of the financial year in Japan. Tomorrow lots of things will be started anew: new balance sheets, new investment plans, new VAT after all. Many investors are afraid that this higher tax will affect consumer and business sentiments and undermine fragile economic recovery, so they scan the statistics for confirmation. Industrial production data was horrid as it dropped 2.3% m/m against expected growth of 3.6% and +3.8% in January, according to the official report published earlier. But the investors kept calm. Later today we are waiting for housing starts and construction orders, weak numbers may put the Japanese currency under pressure, though we don’t believe the impetus would be strong enough to take USD/JPY above 103.00. The failed attempt their may cause the downside correction that is likely to be limited by 102.30.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 102.62, with support below at 102.24, 101.66 and 101.28 with resistance above at 103.20, 103.58, and 104.16. Hourly Moving Averages are bullish, with the 200SMA at 102.20 and the daily 20EMA at 102.29. Hourly RSI is neutral at 68