USD/JPY: Yen Trading Lower This Morning (Dec 18th 2012)
USD/JPY: Yen Trading Lower This Morning Ahead Of The Bank Of Japan Meeting Later This Week
For the 24 hours to 23:00 GMT, the USD weakened 0.28% against the JPY and closed at 83.92.
Japan’s machine tool orders dropped 21.3% (YoY) in November, following 20.7% drop in the previous month.
In the Asian session, at GMT0400, the pair is trading at 84.02, with the USD trading 0.12% higher from yesterday’s close.
The pair is expected to find support at 83.70, and a fall through could take it to the next support level of 83.38. The pair is expected to find its first resistance at 84.25, and a rise through could take it to the next resistance level of 84.48.
usd/jpy is in a mood of strong bullish trend. It looks like usd/jpy will cross 84.48 and might go above 85.25 this week. Technical indicators r strongly favoring Call.
Definately calls on the yen. With unlimited easing on the table and Shinzo Abe at the helm we can only expect to get more yen. Even if he tempers his original plans there will still be more yen and with more yen will come higher prices for dollars and higher prices for yen based stocks. Weakness yesterday and early today was profit taking and is more likely a buying a opportunity.
There is a lot of time for US based traders to sit at home watching their charts over the holiday week/10 days. Forex is one market that will be open with little interruptions. I agree that momentum from professional traders and institutions could wane but recreational traders could send it up over the next week. Regardless, I think the yen is on the way up versus the dollar and any pauses or weaknesses will be buying opportunities for me. Unless of course there is a major shift in plans from Abe and the LDP.
USD/JPY is bullish after Japan's election. The most recent confirm up trendline for USD/JPY has an ending point currently at 80.95. Prices have some difficulty falling below this trendline. USD/JPY breaking below this trendline would be bearish.DI+ is above DI- and at 42 and ADX is trending up at 54 indicating the trend is continuing.