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22 Apr 2013
Forex: USD/JPY edges higher on spill-over strength from last Friday
FXstreet.com (Barcelona) - The USD/JPY is edging higher early in the Asia session, gapping up 30 pips to start the week at 99.80. The strength seems to be a spill over effect from last Friday after market participants learned Japan was not singled at the G20 conference for recent aggressive QE policies. The economic calendar is light in the coming session, with no major reports due out of Japan or the US.
According to Eamonn Sheriden of Forex Live, “Leading into the G20 meeting market concern was that Japan would come under fire for its deflation-fighting policies (which have, as a side-effect, a weaker yen OR are have as a central component the aim of a weaker yen, depending on your point of view). It became clear on Friday that Japan had escaped censure from the G20 over its policies, a position made officially clear at the conclusion of the meetings.”
Short term moving averages remain in bullish set up on the daily chart, with price above both the upward sloping 9 and 20 dma’s. The pair look seems to have its eyes set on testing initial resistance at the psychological 100.00 level. A trade above there could open the doors to 101.46 (resistance on weekly chart from April 2009). First support sits at 99.04 (short term up trend line), followed by 98.67 (the 9 day ma).
According to Eamonn Sheriden of Forex Live, “Leading into the G20 meeting market concern was that Japan would come under fire for its deflation-fighting policies (which have, as a side-effect, a weaker yen OR are have as a central component the aim of a weaker yen, depending on your point of view). It became clear on Friday that Japan had escaped censure from the G20 over its policies, a position made officially clear at the conclusion of the meetings.”
Short term moving averages remain in bullish set up on the daily chart, with price above both the upward sloping 9 and 20 dma’s. The pair look seems to have its eyes set on testing initial resistance at the psychological 100.00 level. A trade above there could open the doors to 101.46 (resistance on weekly chart from April 2009). First support sits at 99.04 (short term up trend line), followed by 98.67 (the 9 day ma).