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9 Sep 2013
USD/JPY, spikes to 100.15 on Olympic bid
FXstreet.com (Chicago) - USD/JPY started strong at the opening of the Asian trading session. Tokyo beat Madrid and Istanbul for the 2020 Olympic bid fueling market participants to strengthen the pair.
Olympic spike?
Despite weaker than expected nonfarm payroll data released last Friday in the US, the greenback trades strong on the first day of the week potentially due to Japan’s loss to host the 2020 Summer Olympics. In Japan, the country released its weaker-than-expected trade balance (BOP basis for July) at -943.3B and GDP annualized results at 3.8% vs. expected 3.7% and past 2.6%.
USD/JPY Technical Levels
Price action reveals a short-lived breakthrough above the key psychological resistance at 100. A ran away gap manifested after heavy buying propelled the pair from 98.00 zone pulled up by a strong Nikkei 225 registering 3.6% at opening to now settle at 2.87%. The pair currently trades at 99.86 between supports at 99.67 (September 4th highs), 99.43 (September 1st highs) ahead of 99.21 (September 3rd lows) and resistances at 100 (September 6th highs), 100.22 (September 5th highs) followed by 100.86 (July 18th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and trades above the EMA20.
Olympic spike?
Despite weaker than expected nonfarm payroll data released last Friday in the US, the greenback trades strong on the first day of the week potentially due to Japan’s loss to host the 2020 Summer Olympics. In Japan, the country released its weaker-than-expected trade balance (BOP basis for July) at -943.3B and GDP annualized results at 3.8% vs. expected 3.7% and past 2.6%.
USD/JPY Technical Levels
Price action reveals a short-lived breakthrough above the key psychological resistance at 100. A ran away gap manifested after heavy buying propelled the pair from 98.00 zone pulled up by a strong Nikkei 225 registering 3.6% at opening to now settle at 2.87%. The pair currently trades at 99.86 between supports at 99.67 (September 4th highs), 99.43 (September 1st highs) ahead of 99.21 (September 3rd lows) and resistances at 100 (September 6th highs), 100.22 (September 5th highs) followed by 100.86 (July 18th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and trades above the EMA20.