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1 Oct 2013
USD/JPY wipes out gains; hits 98.17 lows
FXstreet.com (Chicago) - USD/JPY wiped out daily gains after the apparently imminent US government shutdown on political dynamics to fall to 98.21 lows after being held up around the 98.40 by hopeful bulls that failed to perform.
Noon and midnight
Despite the robustness of primary and secondary trends pointing up, the pair is pulled down by market participants’ reactions to an inevitable US government shutdown and the possibility of a Japanese tax decision coming up sooner than expected. Below the 23.6% Fibonacci level (from yesterday’s reversal from 4-week lows), the pair wipes out earlier gains and seems to find grounds around the 98.20 zone to stall before the 98.30 front. As announced by Bloomberg, noon (Japanese time – 3GMT), will be the time when the Asian government will report a sales tax hike as said as announced a few weeks back by members of the cabinet – post tankan results. In the US, midnight (ET) or 4GMT will be the time when the government will shut down due to the political parties’ indecision to come to an agreement.
USD/JPY Technical Levels
Technically speaking, the pair is offered at 98.27 and oscillates between supports at 98.34 (September 16th lows), 97.44 (August 29th lows) ahead of 96.92 (August 27th lows) and the resistances set at 99.12 (September 26th highs), 99.69 (September 18th highs) followed by 100 (September 15th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis above the EMA20. So far, the pair advances 0.05% today with a total of 0.12% gains this week targeting the negatives if strong reactions continue.
Noon and midnight
Despite the robustness of primary and secondary trends pointing up, the pair is pulled down by market participants’ reactions to an inevitable US government shutdown and the possibility of a Japanese tax decision coming up sooner than expected. Below the 23.6% Fibonacci level (from yesterday’s reversal from 4-week lows), the pair wipes out earlier gains and seems to find grounds around the 98.20 zone to stall before the 98.30 front. As announced by Bloomberg, noon (Japanese time – 3GMT), will be the time when the Asian government will report a sales tax hike as said as announced a few weeks back by members of the cabinet – post tankan results. In the US, midnight (ET) or 4GMT will be the time when the government will shut down due to the political parties’ indecision to come to an agreement.
USD/JPY Technical Levels
Technically speaking, the pair is offered at 98.27 and oscillates between supports at 98.34 (September 16th lows), 97.44 (August 29th lows) ahead of 96.92 (August 27th lows) and the resistances set at 99.12 (September 26th highs), 99.69 (September 18th highs) followed by 100 (September 15th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis above the EMA20. So far, the pair advances 0.05% today with a total of 0.12% gains this week targeting the negatives if strong reactions continue.