Back
31 Dec 2013
USD/JPY opens lower Tuesday after modest intraday reversal Monday; resistance still 105.51
FXstreet.com (Barcelona) - The USD/JPY chart is still bullish overall, but was looking overbought heading into this week. Monday’s intraday reversal was nothing alarming from a technical perspective, but may have been the start of a short-term pause.
USD/JPY traders to monitor US data Tuesday
The USD/JPY pulled back off the highs of the session Monday after the US released weaker-than-expected pending home sales data.
There are no data releases due out from Japan this week as they celebrate the New Year. Tuesday will bring USD/JPY traders to US data points, however – the Chicago Purchasing Managers Index and the US Consumer Confidence Survey.
Technical outlook for USD/JPY
Technicians now say the USD/JPY is likely in the midst of a third wave move higher that should take the cross up to points north of 106. Prior to that level being tested, they say there is a good chance that some profit-taking comes into play at around 105.51. The first two support levels for the cross come in at Friday’s intraday low of 104.64 and the previous resistance of 103.73.
USD/JPY traders to monitor US data Tuesday
The USD/JPY pulled back off the highs of the session Monday after the US released weaker-than-expected pending home sales data.
There are no data releases due out from Japan this week as they celebrate the New Year. Tuesday will bring USD/JPY traders to US data points, however – the Chicago Purchasing Managers Index and the US Consumer Confidence Survey.
Technical outlook for USD/JPY
Technicians now say the USD/JPY is likely in the midst of a third wave move higher that should take the cross up to points north of 106. Prior to that level being tested, they say there is a good chance that some profit-taking comes into play at around 105.51. The first two support levels for the cross come in at Friday’s intraday low of 104.64 and the previous resistance of 103.73.