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22 Apr 2014
USD/JPY goes back to the roots – at 102.40
FXStreet (Moscow) - USD/JPY turned around after it reached 2-week high at 102.70, and moved lower trading around 102.45 area by the moment.
The Yen is destined
Despite the current slide down of the pair from recent highs, the rise of the pair is still not ruled out soon. Yesterday we got the first evidence the consumption tax hike in Japan did have influence on the Japanese economy. We saw significant rise of import in March due to impressive demand from consumers rushing to buy the needed goods before April, 1. The department store sales rose by 25.4% last month forecasting the slump in retail sales in April. If so, it may fuel the expectation on further stimulus from the BOJ, and in this case the Yen is destined to fall lower in medium-term. If market starts to price-in such scenario, we may see the move of the pair to initial target at 102.92 resistance.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 102.57, with support below at 102.41, 102.22 and 102.06 with resistance above at 102.76, 102.92, and 103.11. Hourly Moving Averages are bullish, with the 200SMA at 102.03 and the daily 20EMA at 102.38. Hourly RSI is bullish at 60.
The Yen is destined
Despite the current slide down of the pair from recent highs, the rise of the pair is still not ruled out soon. Yesterday we got the first evidence the consumption tax hike in Japan did have influence on the Japanese economy. We saw significant rise of import in March due to impressive demand from consumers rushing to buy the needed goods before April, 1. The department store sales rose by 25.4% last month forecasting the slump in retail sales in April. If so, it may fuel the expectation on further stimulus from the BOJ, and in this case the Yen is destined to fall lower in medium-term. If market starts to price-in such scenario, we may see the move of the pair to initial target at 102.92 resistance.
What are today’s key USD/JPY levels?
Today's central pivot point can be found at 102.57, with support below at 102.41, 102.22 and 102.06 with resistance above at 102.76, 102.92, and 103.11. Hourly Moving Averages are bullish, with the 200SMA at 102.03 and the daily 20EMA at 102.38. Hourly RSI is bullish at 60.