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28 Feb 2014
USD/JPY feels the pain; 101.80 support is under attack
FXStreet (Moscow) - USD/JPY started Friday on a weaker note and the bears are still in the driver’s seat, moving the pair right to the support level of 101.80 that is strengthened by 100-day moving average.
Geopolitics drives the Yen
On Thursday USD/JPY was sold out, as the pair touched the intraday lows at 101.71 amid geopolitical concerns, but managed to return to the pivotal level 102.00 by the end of the day. Obviously, the bearish bias is much stronger now as tensions in Ukraine drive all safe heaven currencies higher nowadays. Th US Dollar is also considered to be secure, but Yen usually wins this competition of risk-free currencies.The report published early in the morning showed that the inflation in Japan continues to grow slowly and this means that ecumenic recovery is on track and everything is going according to Abe’s plan. This news gave the Japanese currency additional boost. From the technical point of view we need to see a clear cut below 101.80 to extend the downside to the area of strong demand at 101.50. The resistance is seen at 102.00 and followed but 102.20.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 102.10, with support below at 101.74, 101.36 and 101.00, with resistance above at 102.48, 102.84, and 103.22. Hourly Moving Averages are bearish, with the 200SMA at 102.28 and the daily 20EMA at 102.38. Hourly RSI is neutral at 39.
Geopolitics drives the Yen
On Thursday USD/JPY was sold out, as the pair touched the intraday lows at 101.71 amid geopolitical concerns, but managed to return to the pivotal level 102.00 by the end of the day. Obviously, the bearish bias is much stronger now as tensions in Ukraine drive all safe heaven currencies higher nowadays. Th US Dollar is also considered to be secure, but Yen usually wins this competition of risk-free currencies.The report published early in the morning showed that the inflation in Japan continues to grow slowly and this means that ecumenic recovery is on track and everything is going according to Abe’s plan. This news gave the Japanese currency additional boost. From the technical point of view we need to see a clear cut below 101.80 to extend the downside to the area of strong demand at 101.50. The resistance is seen at 102.00 and followed but 102.20.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 102.10, with support below at 101.74, 101.36 and 101.00, with resistance above at 102.48, 102.84, and 103.22. Hourly Moving Averages are bearish, with the 200SMA at 102.28 and the daily 20EMA at 102.38. Hourly RSI is neutral at 39.