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27 Mar 2013
Forex: USD/JPY climbs above 94.80 helped by USD buying across the board
FXstreet.com (Barcelona) - A combination of USD strength across the board, North Korea threatening to attack US military bases, Japan PM Abe speaking to parliament, and comments from former BoJ deputy gov Kazumasa Iwata hitting the wires from a yesterday's Bloomberg report, have all brought USD/JPY higher above 94.80, printing fresh session highs, shy of previous weekly highs Monday at 94.95.
Nikkei index in the other hand is not doing that well, last slightly below the 12500 points mark, up +0.09% for the day, somehow diverging, while Shanghai and Hong-Kong also opened to the upside, last +0.31% and +0.63% respectively. According to CMT and FXstreet.com Independent Analyst Fan Yang: “The USD/JPY has been bearish since the 96.71 March high,” the analyst notes, adding: “A break above 95.50 might revive the bullish outlook, which is still intact, but has lost steam.”
In the other hand, Fan adds: “To neutralize the bullish outlook, USD/JPY needs to break below a rising trendline going back to November, in which case it would probably test a 92.00 handle and previous support pivot, between targeting the 90.85 support pivot,” the concludes.
Mr Yang locates support levels at: 93.24, 93.55 and 94.08, while resistance levels at: 94.92, 95.23 and 95.76.
Nikkei index in the other hand is not doing that well, last slightly below the 12500 points mark, up +0.09% for the day, somehow diverging, while Shanghai and Hong-Kong also opened to the upside, last +0.31% and +0.63% respectively. According to CMT and FXstreet.com Independent Analyst Fan Yang: “The USD/JPY has been bearish since the 96.71 March high,” the analyst notes, adding: “A break above 95.50 might revive the bullish outlook, which is still intact, but has lost steam.”
In the other hand, Fan adds: “To neutralize the bullish outlook, USD/JPY needs to break below a rising trendline going back to November, in which case it would probably test a 92.00 handle and previous support pivot, between targeting the 90.85 support pivot,” the concludes.
Mr Yang locates support levels at: 93.24, 93.55 and 94.08, while resistance levels at: 94.92, 95.23 and 95.76.