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26 Jun 2013
USD/JPY dips below 98.00 on Yen strength
FXstreet.com (Barcelona) - It was an early Asian session with relative Yen weakness, printing fresh daily highs at 98.24 for USD/JPY, but since Tokyo opened, and even though Nikkei index posted early gains above the +1%, the USD/JPY pair has been printing lower highs and lower lows ever since.
Last at 97.91, off fresh session lows at 97.83, USD/JPY has seen a new round of selling following Shanghai open, with the Composite index down at some point -1.24%, taking metals down the toilet included Copper, and Silver&Gold making fresh 3-year lows.
Risk remains to the downside
According to Valeria Bednarik, Chief Analyst at Fxstreet.com, “short term technical readings present a slightly bullish stance, with 100 SMA heading north below current price and moving away from 200 one, while indicators stand above their midlines,” adding: “Lack of follow through on dollar strength and rising stocks, confirms buyers are not around and risk remains to the downside, with a break below 96.80 now required to confirm a new leg down.
Key technical levels
Immediate support to the downside for USD/JPY lies at recent session lows 97.83, followed by June 07 highs at 97.52, and June 21 lows at 97.31. To the upside, closest resistance shows at yesterday's Asia-Pacific highs 98.04, followed by recent session highs at 98.25, and Monday's weekly highs at 98.70.
Last at 97.91, off fresh session lows at 97.83, USD/JPY has seen a new round of selling following Shanghai open, with the Composite index down at some point -1.24%, taking metals down the toilet included Copper, and Silver&Gold making fresh 3-year lows.
Risk remains to the downside
According to Valeria Bednarik, Chief Analyst at Fxstreet.com, “short term technical readings present a slightly bullish stance, with 100 SMA heading north below current price and moving away from 200 one, while indicators stand above their midlines,” adding: “Lack of follow through on dollar strength and rising stocks, confirms buyers are not around and risk remains to the downside, with a break below 96.80 now required to confirm a new leg down.
Key technical levels
Immediate support to the downside for USD/JPY lies at recent session lows 97.83, followed by June 07 highs at 97.52, and June 21 lows at 97.31. To the upside, closest resistance shows at yesterday's Asia-Pacific highs 98.04, followed by recent session highs at 98.25, and Monday's weekly highs at 98.70.