The UsdJpy is trading at 101.21, ranging from 101.01 to 101.82. The current price is under yesterday's close at 101.57. Checking the hourly graphics, the 20- and 50-day Exponential Mobile Averages (EMA) are under the 200-day EMA.
The traders are watching the resistances at 105.15 (October 6th high), 108.02 (September 19th high) and 110.67 (August 15th high). On the other hand, the pair is recovering from the psychological support at 100.00 (key). If it's broken, the traders will watch the next levels at 98.46 (March 20th low) and 95.75 (March 17th low).
As usual, the carry trades pairs follow the ups and downs in the stock markets, and there have been plenty of those. Monday, the selling of the Yen was motivated by the agreements reached in Paris and Washington about the rescue plans for the financial system. Then, it was the time to buy the Yen for three days in a row with the same intensity and, today, the stock markets regained the confidence, prompting the selling of the Yen.
Wall Street closed on positive terrain yesterday (4.68%). This was the fuel for the major to negotiate above the 100 yen psychological level.
Meanwhile, the 60-minute Relative Strenght Index (RSI) is at 47 points, rebounding from the overbought area. The volatility per hour is 160 pips. Checking the graphics again, we see that the current price is under the 23.60% (130.80) and over the 0.00% (80.23) Fibonacci retracement lines.
|