Forex: USD/JPY fails to overtake 100.00 level

FXstreet.com (Barcelona) - The USD/JPY failed to summit the 100.00 level today, stalling at 99.87 (daily maximum) during European trading. Since then, the cross has fallen into negative territory to trade at 99.61/70 in these moments, netting a loss of -0.11% Thursday.

Briefing the technicals, the Mataf.net technical analyst team identifies supports at 99.06, onto 98.51, and finally 98.10. Conversely, a break above 100.02 will initiate supportive measures at 100.43 and 100.98.

“The USD/JPY got closer to 99.85 levels and key resistance of the upside move, the psychological barrier 100.00 offers a possibility of some bearish correction especially that momentum indicators are showing overbought signals. Meanwhile, the abovementioned cannot be confirmed in light of the positivity of Linear Regression Indicators. Therefore, we prefer to remain intraday neutral waiting for confirmation signals.” suggests the ICN.com analyst team.

According to Research analyst Gareth Berry at UBS, “There has been a lot of talk about BoJ easing possibly pushing Japanese real money offshore, but there is another channel through which yen weakness can arise. Put simply, now that rates volatility has spread to the shores of Japan, the USD/JPY get a second wind from foreigners pulling out.”