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12 Aug 2013
USD/JPY breaks out 96.60 zone
FXstreet.com (Chicago) - USD/JPY continues steady ascension post GDP data shock.
On GDP at 2.6% vs. projected 3.6%, market participants reacted strongly favoring the greenback. In Japan, the Nikkei was dragged by slacking data as illustrated by a shorter timeframe QoQ GDP results at 0.6% vs. previous 1.0% and estimates at 0.9%. According to Sean Lee, FXWW technical analyst, “it is unusual for USD/JPY to move too far on domestic data, so the fact that it fell 30 pips is more of a reflection on market sentiment and positioning than on any fundamental reflection of the yen.”
Technically speaking, the pair trades at 96.60 respecting supports at 96.08 (August 7th lows), 95.96 (daily lows) ahead of 95.81 (August 8th lows) and breaking above resistances at 96.41 (June 10th lows) and at 96.54 (June 11th highs). The following resistance is aligned at 96.74 (August 9th highs). The FXstreet.com trend index indicates the pair is strongly bearish on one-hour timeframe analysis.
On GDP at 2.6% vs. projected 3.6%, market participants reacted strongly favoring the greenback. In Japan, the Nikkei was dragged by slacking data as illustrated by a shorter timeframe QoQ GDP results at 0.6% vs. previous 1.0% and estimates at 0.9%. According to Sean Lee, FXWW technical analyst, “it is unusual for USD/JPY to move too far on domestic data, so the fact that it fell 30 pips is more of a reflection on market sentiment and positioning than on any fundamental reflection of the yen.”
Technically speaking, the pair trades at 96.60 respecting supports at 96.08 (August 7th lows), 95.96 (daily lows) ahead of 95.81 (August 8th lows) and breaking above resistances at 96.41 (June 10th lows) and at 96.54 (June 11th highs). The following resistance is aligned at 96.74 (August 9th highs). The FXstreet.com trend index indicates the pair is strongly bearish on one-hour timeframe analysis.