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10 Sep 2013
USD/JPY well above 100.00 area as safety demands wanes
FXstreet.com (Athens)- The USD/JPY is trading steadily above 100.00 area due to stabilized China data, as well as on easing “Syria-jitters.”
USD/JPY heading upwards on hopes that geo-political tensions will ease.
The USD/JPY is trading constantly higher as August Chinese Industrial Production grew faster than expected and the geo-political tensions are fading away. Elaborating on, Chinese Industrial output, retail sales and fixed assets investment were released at much higher than expected levels. This helps solidify the sense that the Chinese economy has stabilized, i.e. help calm emerging market fears and massively reduce demand for the Yen. What’s more, the USD/JPY surely got also lifted up, by “Syrian progress” on the political backdrop. More precisely, Russian President Putin approached US President Obama about an international weapons sequester that would see any chemical weapons in Syria’s possession turned over to international authorities, in order to avoid any military strike on behalf of the U.S.
Technical Perspective and Outlook on USD/JPY
We could say that the risk-on impulses are weighing on the yen, against which the dollar is trying to establish a foothold above 100.00 area. As long as all the Japanese crosses continue to squeeze higher, the USD/JPY will pave an uptrend way. Basically taken for granted that things in Syria will finally calm down, will boost the pair further as to avoid military conflict is seen as a bullish catalyst for risk-appetite. At the time of writing the pair is trading at 100.31 area, up 0.76%. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes timeframe. Daily pivot point support can be found at 98.81, 98.57, 98.02 and resistance at 100.11, 100.36 and 100.50, respectively.
USD/JPY heading upwards on hopes that geo-political tensions will ease.
The USD/JPY is trading constantly higher as August Chinese Industrial Production grew faster than expected and the geo-political tensions are fading away. Elaborating on, Chinese Industrial output, retail sales and fixed assets investment were released at much higher than expected levels. This helps solidify the sense that the Chinese economy has stabilized, i.e. help calm emerging market fears and massively reduce demand for the Yen. What’s more, the USD/JPY surely got also lifted up, by “Syrian progress” on the political backdrop. More precisely, Russian President Putin approached US President Obama about an international weapons sequester that would see any chemical weapons in Syria’s possession turned over to international authorities, in order to avoid any military strike on behalf of the U.S.
Technical Perspective and Outlook on USD/JPY
We could say that the risk-on impulses are weighing on the yen, against which the dollar is trying to establish a foothold above 100.00 area. As long as all the Japanese crosses continue to squeeze higher, the USD/JPY will pave an uptrend way. Basically taken for granted that things in Syria will finally calm down, will boost the pair further as to avoid military conflict is seen as a bullish catalyst for risk-appetite. At the time of writing the pair is trading at 100.31 area, up 0.76%. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes timeframe. Daily pivot point support can be found at 98.81, 98.57, 98.02 and resistance at 100.11, 100.36 and 100.50, respectively.