Market Overview

USD / JPY – What a Move Closing in on 90

For the most part of last year, the Yen was in decline loosely forming a descending triangle with the support level at 78.00  It was experiencing a little roller coaster ride during that time and the 78 level consistently supported the Yen and temporarily halted its steady decline, in the face of strong evidence it was going to fall lower.

In early October, the Yen again bounced off the 78 level however this time it was able to sustain its movement higher as it broke through a couple of likely resistance levels along the way.   Since the middle of October, there has been an impressive strong move higher as the Yen has only moved in one direction.  This has resulted in the Yen trading at levels not seen in two and a half years amid extensive discussion about the BOJ.   During the last week, the Yen has met resistance around 90 which has seen it just ease off a little.  This price action is similar to what was seen less than two weeks ago before the Yen continue higher again.

(Daily chart below)

Yen_20121212

USD / JPY

   Jan 15 at 23:50 GMT
88.78 / 80    H: 89.08    L: 88.28

 

S3 S2 S1 R1 R2 R3
87.00 86.00 89.00 90.00

USD/JPY Long – Short Ratio

(Shows the ratio of long vs. short positions for the USD/JPY. The left percentage (blue) shows long positions; the right percentage (orange) shows short positions.)

USD/JPY Technical

  • During the early hours of the Asian trading session on Wednesday, the USD/JPY has just eased off a little from a short term resistance level around 89.00.
  • The last few months have seen the Yen move higher strongly pushing off the key support level at 78.00 and moving towards trading levels not seen in its two and a half years.
  • Current range:  Just below 89.00 around 88.75.

 

Further levels in both directions:

  • Below: 89.00, 87.00 and 86.00.
  • Above: 90.00.

 

January 16

  • AU 0:30 (GMT) New motor vehicle sales (Dec)
  • JP 5:00 (GMT) Consumer Confidence (Dec)
  • CH 8:15 (GMT) Retail Sales (Nov)
  • US 13:30 (GMT) CPI (Dec)
  • US 14:15 (GMT) Industrial production (Dec)
  • US 15:00 (GMT) NAHB Builders survey (Jan)

 

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