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6 Jun 2014
USD/JPY is flirting downside break of 20 SMA
FXStreet (Guatemala) - USD/JPY is trading at 102.43, up 0.02% on the day, having posted a daily high at 102.46 and low at 102.37.
Further downward moves seem limited with such strength in stocks and again ahead of US employment figures but nevertheless, as Valeria Bednarik, chief analyst at FXStreet states, a break below 102.30 exposes the pair to a test of the 101.70 strong static support. Sean Callow, Westpac Banking Corporation ABN explained that the USD/JPY gyrated with US yields. “The USD/JPY squeeze to a high of 102.73 came around the ECB rate announcement, with the US 10 year T-note yield jumping 6bp to 2.64% but returning to 2.58% late NY.USD/JPY emerged about 10 pips lower at 102.40”. Much here will now depend on the Nonfarm Payrolls result in the US session and Westpac believes the risks to US May headline non-farm payrolls are skewed strongly to the weak side of the 215K consensus. “April’s 288K headline jobs gain was the largest rise since Jan 2012. This is a very high base for May, probably helped by the unusually late Easter. One need not be especially bearish on the US economy to expect a headline well short of 215K. There is less risk of surprise in the separately-calculated unemployment rate; we agree with consensus of 6.4% vs 6.3% in April”.
USD/JPY Levels
Current price is 102.43, with resistance ahead at 102.46 (Daily High), 102.49 (Hourly 20 EMA), 102.51 (Daily Classic S1), 102.52 (Weekly Classic R2) and 102.66 (Daily Classic PP). Next support to the downside can be found at 102.41 (Hourly 100 SMA), 102.41 (Daily Open), 102.37 (Daily Low), 102.35 (Daily 100 SMA) and 102.34 (Yesterday's Low).
Further downward moves seem limited with such strength in stocks and again ahead of US employment figures but nevertheless, as Valeria Bednarik, chief analyst at FXStreet states, a break below 102.30 exposes the pair to a test of the 101.70 strong static support. Sean Callow, Westpac Banking Corporation ABN explained that the USD/JPY gyrated with US yields. “The USD/JPY squeeze to a high of 102.73 came around the ECB rate announcement, with the US 10 year T-note yield jumping 6bp to 2.64% but returning to 2.58% late NY.USD/JPY emerged about 10 pips lower at 102.40”. Much here will now depend on the Nonfarm Payrolls result in the US session and Westpac believes the risks to US May headline non-farm payrolls are skewed strongly to the weak side of the 215K consensus. “April’s 288K headline jobs gain was the largest rise since Jan 2012. This is a very high base for May, probably helped by the unusually late Easter. One need not be especially bearish on the US economy to expect a headline well short of 215K. There is less risk of surprise in the separately-calculated unemployment rate; we agree with consensus of 6.4% vs 6.3% in April”.
USD/JPY Levels
Current price is 102.43, with resistance ahead at 102.46 (Daily High), 102.49 (Hourly 20 EMA), 102.51 (Daily Classic S1), 102.52 (Weekly Classic R2) and 102.66 (Daily Classic PP). Next support to the downside can be found at 102.41 (Hourly 100 SMA), 102.41 (Daily Open), 102.37 (Daily Low), 102.35 (Daily 100 SMA) and 102.34 (Yesterday's Low).