USD/JPY: daily update
USD/JPY remains in the consolidative mood. On the upside, there’s the same daily Ichimoku Cloud with the lower border in the 98.00 area. There’s more resistance at 98.70, 99.00 (55-day MA) and, of course, 100.00 handle. On the downside, there’s 100-day MA around 97.00. The greenback is fluctuating around 97.50 (23.6% Fibo of the advance from September lows. A slide below 96.80 will bring the pair down to 95.00.
On the one hand, USD is supported by the encouraging data from the US and the prospects of the Fed’s tapering asset purchases. On the other hand, there’s demand for yen as a safe haven as investors are still worrying about Chinese liquidity situation. As the situation in China is calming down, we expect USD-positive factors to win.
Today watch US final Q1 GDP and the speech of Minneapolis Fed President Narayana Kocherlakota.
Chart. Daily USD/JPY