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2 Aug 2013
USD/JPY held support at 97.68 and ripped higher after US data
FXstreet.com (Barcelona) - The USD/JPY rallied strongly on Thursday and into Friday after US data came in stronger-than-expected early in the US session on Thursday.
Better jobless claims and PMI data sent the USD/JPY soaring
Economic data out of the US on Thursday caused a very strong rally that made USD/JPY shorts run for cover. The weekly jobless claims number came in lower-than-expected (DXY-bullish) and the ISM Manufacturing PMI came in better-than-expected for last month. Each number served as rocket fuel for a greenback that was short-term oversold and hovering above possible support at 97.68. Traders will now focus on the big US employment number early Friday in the US for further guidance on the direction of USD/JPY.
USD/JPY technical outlook
Technicians had been calling for an oversold bounce in the USD/JPY – well it came on Thursday. Now, their chore is to find where the rally will stop. They identify first resistance for USD/JPY at the Fibonacci retracement (of the 7/19 – 7/31 decline) at 99.61 and is backed up by the 7/19 peak at 100.86. Shorter-term support for USD/JPY comes in at the Fibonacci “correction support” at 97.68 and is followed up by the 7/31 low at 97.57.
Better jobless claims and PMI data sent the USD/JPY soaring
Economic data out of the US on Thursday caused a very strong rally that made USD/JPY shorts run for cover. The weekly jobless claims number came in lower-than-expected (DXY-bullish) and the ISM Manufacturing PMI came in better-than-expected for last month. Each number served as rocket fuel for a greenback that was short-term oversold and hovering above possible support at 97.68. Traders will now focus on the big US employment number early Friday in the US for further guidance on the direction of USD/JPY.
USD/JPY technical outlook
Technicians had been calling for an oversold bounce in the USD/JPY – well it came on Thursday. Now, their chore is to find where the rally will stop. They identify first resistance for USD/JPY at the Fibonacci retracement (of the 7/19 – 7/31 decline) at 99.61 and is backed up by the 7/19 peak at 100.86. Shorter-term support for USD/JPY comes in at the Fibonacci “correction support” at 97.68 and is followed up by the 7/31 low at 97.57.