USD / JPY Trading Outlook
USDJPY Traders went on their Christmas break over a month ago but there may be potential for a move today once NFP is announced. The Asia session again provided little to talk about and this season has been much of a damp squib for the pair following all the action provided previously with BoJ interventions, natural disasters and nuclear meltdowns. Y77.68-Y77.88 is hardly worth trading but if the NFP misses its forecast then QE3 likelihood before March rises and this would weigh heavily on the Dollar.
USD/JPY slumped from 78.0 down to 77.30 as USD weakened, since there has been a slight recovery to 77.60 with the dollar clawing back some of its losses. The technical expectation is for the pair to continue down and there is a preference to sell at 77.95 with the initial resistance at 77.30 followed by 77.10.
USD/JPY has been in an uptrend from 77.60 since yesterday and currently peaks at 78.15 which in the short-term is a key resistance and there is a preference to sell here with first profit target at 77.60. Overnight Japan’s PMI came out lower at 49.1 however industrial output increased in October to 2.4% from -3.3% in the previous month.
USD/JPY jumped across 78.00 in yesterdays trading as stop-losses resting on the upper side were hit, giving the pair some momentum to 78.27. The Asia and UK open has pulled the price back down to 77.75 which, from a technical stance, is the pivot point and there is a preference to buy here if this level holds. The initial resistance is 78.30 followed by 78.50.
USD/JPY traded up to 77.75-77.80 on Friday however the open on Sunday gaped lower. The 77.50 level acted as a strong support and the pair now points towards 77.80, the initial resistance, again. Japan’s Vice-Minister of Finance, Nakao, has warned that they would intervene again if needed.
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