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19 Sep 2013
USD/JPY sustains 7-day highs above 99.30 zone
FXstreet.com (Chicago) - USD/JPY continues trading strong after a +150 pips rally. The pair regained yesterday’s losses after a surprising decision from the Federal Reserve not to taper as the US economy is still on bad shape with high unemployment and high inflation rates above targeted goals.
Data recap
Earlier in Japan, the all industry index was 0.5% vs. past -0.6% and expected 0.4%. The leading economy index was 107.9 vs. prior 107.3 and the coincident index was 107.7 vs. past 106.6. In the US, initial jobless claims were 309K beating estimates at 330K while the continuing jobless claims were 2.787M vs. projections at 2.900M. The CB leading indicator was 0.7% vs. expected 0.6% and the existing home sales change was 1.7% vs. estimates at -2.6%. Finally, the Philadelphia Fed Manufacturing survey was 22.3 vs. expected 10 and past 9.3.
USD/JPY Technical Levels
Price action reveals the pair soared at the opening of the American trading session recovering weekly losses and snapping back to the 99.00 zone. The pair was capped around the 99.60 zone but manages to consolidate earlier gains above the 99.30 zone. Offered at 99.34, the pair navigates between supports aligned at 99.32 (September 17th highs), 99 (September 17th lows) ahead of 98.73 (September 15th lows) and resistances set at 99.64 (September 18th highs), 99.97 (September 12th highs) followed by 100.23 (September 5th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and trades above the EMA20.
Data recap
Earlier in Japan, the all industry index was 0.5% vs. past -0.6% and expected 0.4%. The leading economy index was 107.9 vs. prior 107.3 and the coincident index was 107.7 vs. past 106.6. In the US, initial jobless claims were 309K beating estimates at 330K while the continuing jobless claims were 2.787M vs. projections at 2.900M. The CB leading indicator was 0.7% vs. expected 0.6% and the existing home sales change was 1.7% vs. estimates at -2.6%. Finally, the Philadelphia Fed Manufacturing survey was 22.3 vs. expected 10 and past 9.3.
USD/JPY Technical Levels
Price action reveals the pair soared at the opening of the American trading session recovering weekly losses and snapping back to the 99.00 zone. The pair was capped around the 99.60 zone but manages to consolidate earlier gains above the 99.30 zone. Offered at 99.34, the pair navigates between supports aligned at 99.32 (September 17th highs), 99 (September 17th lows) ahead of 98.73 (September 15th lows) and resistances set at 99.64 (September 18th highs), 99.97 (September 12th highs) followed by 100.23 (September 5th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and trades above the EMA20.