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1 Jul 2014
USD/JPY regains 101.50
FXStreet (Edinburgh) - The Japanese yen is losing ground on Tuesday, lifting the USD/JPY back to the 101.50 area amidst increasing risk-on trade.
USD/JPY bounces off 101.20
After hitting session lows in sub-101.30 levels on Monday, spot managed to regain the mid-101.00 region and post session highs just below 101.60. Increasing risk aversion is offsetting the negative impact of lower US yields in the greenback, allowing the current rebound. “Rather than the 200-day MA, we rather think the USD will take its cue from the 100.75/80 area—where the February and May lows converge with weekly cloud support. A clear push through the upper 100 zone, combined with the seasonal trends would open up the downside for a push to the upper 98s potentially, perhaps more”, suggested Shaun Osborne, Chief FX Strategist at TD Securities.
USD/JPY levels to consider
At the moment the pair is up 0.24% at 101.57 with the next resistance at 101.70 (Ichimoku Cloud Base) ahead of 101.77 (high Jun.27) and then 101.87 (high Jun.26). On the downside, a break below 101.24 (low Jun.30) would open the door to 101.00 (psychological level) and finally 100.81 (low May.21).
USD/JPY bounces off 101.20
After hitting session lows in sub-101.30 levels on Monday, spot managed to regain the mid-101.00 region and post session highs just below 101.60. Increasing risk aversion is offsetting the negative impact of lower US yields in the greenback, allowing the current rebound. “Rather than the 200-day MA, we rather think the USD will take its cue from the 100.75/80 area—where the February and May lows converge with weekly cloud support. A clear push through the upper 100 zone, combined with the seasonal trends would open up the downside for a push to the upper 98s potentially, perhaps more”, suggested Shaun Osborne, Chief FX Strategist at TD Securities.
USD/JPY levels to consider
At the moment the pair is up 0.24% at 101.57 with the next resistance at 101.70 (Ichimoku Cloud Base) ahead of 101.77 (high Jun.27) and then 101.87 (high Jun.26). On the downside, a break below 101.24 (low Jun.30) would open the door to 101.00 (psychological level) and finally 100.81 (low May.21).