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12 Mar 2014
USD/JPY heavy below 103.00
FXStreet (Bali) - The USD/JPY is trading weaker at the Tokyo open, with a -1.75% open in the Nikkei 225 adding pressure to the pair.
China worries keep the Yen bid
In the last US session, concerns that further Chinese businesses could default on their debt caused market sentiment to deteriorate significantly, causing the Japanese Yen to benefit on a classic flight to safety, mainly driven by a heavy decline in AUD/JPY.
USD/JPY outlook
According to Jim Langlands, Founder at FXCharts: "The short term indicators are pointing lower although the dailies are flat. If we do make a move for the downside, the dollar would initially find bids at the previous high at around 102.80 (38.2% of 101.20/103.76) and then at the 50% pivot of 101.20/103.76 at 102.50 (daily tenkan; 102.48/ 200 HMA 102.45). If the dollar decides to turn higher, which looks a bit less likely, then 102.20 will be minor resistance ahead of stronger sellers in the 103.40/50 area."
China worries keep the Yen bid
In the last US session, concerns that further Chinese businesses could default on their debt caused market sentiment to deteriorate significantly, causing the Japanese Yen to benefit on a classic flight to safety, mainly driven by a heavy decline in AUD/JPY.
USD/JPY outlook
According to Jim Langlands, Founder at FXCharts: "The short term indicators are pointing lower although the dailies are flat. If we do make a move for the downside, the dollar would initially find bids at the previous high at around 102.80 (38.2% of 101.20/103.76) and then at the 50% pivot of 101.20/103.76 at 102.50 (daily tenkan; 102.48/ 200 HMA 102.45). If the dollar decides to turn higher, which looks a bit less likely, then 102.20 will be minor resistance ahead of stronger sellers in the 103.40/50 area."