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1 Oct 2013
USD/JPY rebounds off of 97.70 correction support – could go either way here
FXstreet.com (Barcelona) - The USD/JPY gapped lower Monday but saw every bit of that gap filled by the end of the session.
USD/JPY reflecting Yen’s status as only safe-haven currency right now
USD/JPY traders reacted Monday primarily to shifts in the global perception of “safety” as well as technicals for the cross. Tuesday, they will obviously have to continue to react to the developments in Washington. On top of that, however, they will get to digest Japanese household spending and the unemployment rate as well as US PMI and construction spending.
Technical outlook for USD/JPY
The USD/JPY bounced off of the 100% Fibonacci projection line (also referred to as “correction support” at 97.70. As long as the cross holds above that support, technicians say the bulls have a chance. Any close below that level will lead to an acceleration to the downside. Resistance will be Friday’s close of 98.26 with 99 above that.
USD/JPY reflecting Yen’s status as only safe-haven currency right now
USD/JPY traders reacted Monday primarily to shifts in the global perception of “safety” as well as technicals for the cross. Tuesday, they will obviously have to continue to react to the developments in Washington. On top of that, however, they will get to digest Japanese household spending and the unemployment rate as well as US PMI and construction spending.
Technical outlook for USD/JPY
The USD/JPY bounced off of the 100% Fibonacci projection line (also referred to as “correction support” at 97.70. As long as the cross holds above that support, technicians say the bulls have a chance. Any close below that level will lead to an acceleration to the downside. Resistance will be Friday’s close of 98.26 with 99 above that.