USD/JPY confined in a narrow trading band below 104.00 handle

The USD/JPY pair extended its consolidation phase and remained confined within a narrow trading band around 104.00 handle.

Currently trading with mild negative bias around 103.70-75 region, traders seemed uninspired with mixed Chinese macroeconomic data that showed growth in the world's second largest economy held steady at 6.7% during Q3 of 2016, while industrial production for September dropped to 6.1%. 

Also on Tuesday, the pair seesawed between tepid gains / minor losses and struggled for a firm direction. Even the release of US consumer inflation failed to provide any impetus as the near-term trajectory remains solely dependent on investors’ expectations over the next Fed rate-hike action. 

Today's US housing market data – building permits and housing starts will be looked upon to grab short-term trading opportunities, while the broader movement would be driven by the prevalent risk sentiment around equity markets that derives the Japanese Yen's safe-haven demand. 

Technical levels to watch

A follow through selling pressure below session low support near 103.65, leading to a subsequent drop below 103.50, is likely to accelerate the slide towards 100-day SMA support near 103.15-10 region. Meanwhile on the upside, recovery momentum above 104.00 handle might continue to confront resistance near 104.20 level (yesterday's high) above which the pair is likely to aim towards 104.40-50 strong resistance area.

  • 1 Week
  • 1 Month
  • 1 Quarter

1 Week Avg Forecast 103.27 100.0%88.0%44.0%04050607080901000  

  • 44% Bullish
  • 44% Bearish
  • 11% Sideways

Bias Neutral 1 Month Avg Forecast 103.16 100.0%61.0%15.0%01020304050607080901000  

  • 15% Bullish
  • 46% Bearish
  • 38% Sideways

Bias Bearish 1 Quarter Avg Forecast 104.07 100.0%60.0%20.0%020304050607080901000  

  • 20% Bullish
  • 40% Bearish
  • 40% Sideways

Bias Bearish


Будьте первым, кто решился написать!

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