Back
21 Apr 2014
USD/JPY a drift higher on 102.60
FXStreet (Guatemala) - Currently, USD/JPY is trading at 102.61, up 0.19% on the day, having posted a daily high at 102.72 and low at 102.37.
The JPY is the primary under-performer in the overnight session in the G-10 FX space due to the weak trade data. There is a ¥13.7 tn trade deficit for FY 2013, the third year in a row that Japan registers a negative trade balance. Strategists at TD Securities noted that although a concern from a medium-term perspective, the deteriorating net trade is not having a more significant effect on the currency because a number of factors mitigate its short-term impact. “First, a positive net income balance largely offsets the trade deficit in the current account. Second, although the latter has deteriorated, Japan’s sizeable net foreign asset position equivalent to roughly 62% of GDP provides a significant safety buffer against currency depreciation; and so do its large foreign exchange reserves. Having said that, we do expect the JPY to lose ground against USD, with USDJPY rising to 110 by June-end, mostly on reflection of diverging monetary policy outlooks between the two countries”.
Daily RSI sits at 50.40, in neutral territory
Looking to momentum indicators, the hourly 200 SMA is currently at 102.49, up from the last close at 102.01 and climbing.
USD/JPY Levels
Spot is presently trading at 102.62, and next resistance can be seen at 102.72 (Daily High), 102.72 (Daily Classic R2), 102.86 (Daily Classic R3), 102.87 (Weekly Classic R1) and 102.94 (Daily 100 SMA). Next support to the downside can be found at 102.59 (Yesterday's High), 102.57 (Daily Classic R1), 102.57 (Hourly 20 EMA), 102.44 (Daily Classic PP) and 102.43 (Daily Open).
The JPY is the primary under-performer in the overnight session in the G-10 FX space due to the weak trade data. There is a ¥13.7 tn trade deficit for FY 2013, the third year in a row that Japan registers a negative trade balance. Strategists at TD Securities noted that although a concern from a medium-term perspective, the deteriorating net trade is not having a more significant effect on the currency because a number of factors mitigate its short-term impact. “First, a positive net income balance largely offsets the trade deficit in the current account. Second, although the latter has deteriorated, Japan’s sizeable net foreign asset position equivalent to roughly 62% of GDP provides a significant safety buffer against currency depreciation; and so do its large foreign exchange reserves. Having said that, we do expect the JPY to lose ground against USD, with USDJPY rising to 110 by June-end, mostly on reflection of diverging monetary policy outlooks between the two countries”.
Daily RSI sits at 50.40, in neutral territory
Looking to momentum indicators, the hourly 200 SMA is currently at 102.49, up from the last close at 102.01 and climbing.
USD/JPY Levels
Spot is presently trading at 102.62, and next resistance can be seen at 102.72 (Daily High), 102.72 (Daily Classic R2), 102.86 (Daily Classic R3), 102.87 (Weekly Classic R1) and 102.94 (Daily 100 SMA). Next support to the downside can be found at 102.59 (Yesterday's High), 102.57 (Daily Classic R1), 102.57 (Hourly 20 EMA), 102.44 (Daily Classic PP) and 102.43 (Daily Open).