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9 Sep 2013
USD/JPY ramps to open the week on celebratory “risk-on” attitude in Japan
FXstreet.com (Barcelona) - There is a national celebration going on in Japan as we head into the new week after Tokyo was declared the host city for the 2020 Olympic Games. That attitude has carried over to a “risk-on” mood in the Asian markets which is lifting the USD/JPY – at least in the early going.
USD/JPY will have plenty of other things to react to this week
After posting a very clear bearish engulfing candle resistance on Friday, the USD/JPY is on the rise to start the week – primarily as a result of the joyous attitude in Japan following the news that Tokyo will be hosting the Olympics in 2020. Once that initial giddiness wears off, the hard work will begin for analysts in projecting the positive economic impact of winning that very competitive bid. Meanwhile, USD/JPY traders will have to deal with the shorter-term realities in both Japan and the US.
The “reality” mentioned will be on full display starting early Monday as Japan will be announcing GDP, bank lending, trade balance and consumer confidence data as well as the Eco Watchers Survey. There won’t be any meaningful data released in the US on Monday – but a great deal of attention will be on the ongoing US / Syria conflict.
Technical outlook for USDJPY
Technicians say that for the bearish candle from Friday to be negated that the USD/JPY will need to set new short-term highs above 100.22. Support for USD/JPY comes in at Friday’s low at 98.53 with the 8/28 low of 96.81 below that.
USD/JPY will have plenty of other things to react to this week
After posting a very clear bearish engulfing candle resistance on Friday, the USD/JPY is on the rise to start the week – primarily as a result of the joyous attitude in Japan following the news that Tokyo will be hosting the Olympics in 2020. Once that initial giddiness wears off, the hard work will begin for analysts in projecting the positive economic impact of winning that very competitive bid. Meanwhile, USD/JPY traders will have to deal with the shorter-term realities in both Japan and the US.
The “reality” mentioned will be on full display starting early Monday as Japan will be announcing GDP, bank lending, trade balance and consumer confidence data as well as the Eco Watchers Survey. There won’t be any meaningful data released in the US on Monday – but a great deal of attention will be on the ongoing US / Syria conflict.
Technical outlook for USDJPY
Technicians say that for the bearish candle from Friday to be negated that the USD/JPY will need to set new short-term highs above 100.22. Support for USD/JPY comes in at Friday’s low at 98.53 with the 8/28 low of 96.81 below that.