Back
21 Feb 2014
USD/JPY: 102.50 offers cap intraday rally
FXStreet (Bali) - USD/JPY has produced a new leg up at the Tokyo open, despite offers around the 102.50 (session high of 102.54) prevented further progress.
Nikkei 225 underpins USD/JPY
The improved performance on the Nikkei 225, up almost 2%, has been underpinning the pair in the early trading, as traders aim to retest the higher end of the daily range at 102.70 ahead of 103.00 resistances.
USD/JPY technicals
With no fundamental data to act as a catalyst, it is unlikely that the pair will unravel its range environment for now, thus playing the edges at 102.70/103.00 on the upside and 101.40/50 on the downside remains a sensible strategy.
According to Jim Langlands, Founder at FXCharts: "The 4 hour momentum indicators are flat, indicating another choppy session, and on the topside sellers will appear, firstly at 102.50, above which 102.70/75 remains quite strong resistance. A break of this would see a run up towards 103.00 (103.08: 50% pivot of 105.43/100.77) and beyond, to descending trend/61.8% Fibo resistance at 103.50."
Nikkei 225 underpins USD/JPY
The improved performance on the Nikkei 225, up almost 2%, has been underpinning the pair in the early trading, as traders aim to retest the higher end of the daily range at 102.70 ahead of 103.00 resistances.
USD/JPY technicals
With no fundamental data to act as a catalyst, it is unlikely that the pair will unravel its range environment for now, thus playing the edges at 102.70/103.00 on the upside and 101.40/50 on the downside remains a sensible strategy.
According to Jim Langlands, Founder at FXCharts: "The 4 hour momentum indicators are flat, indicating another choppy session, and on the topside sellers will appear, firstly at 102.50, above which 102.70/75 remains quite strong resistance. A break of this would see a run up towards 103.00 (103.08: 50% pivot of 105.43/100.77) and beyond, to descending trend/61.8% Fibo resistance at 103.50."