USD/JPY: bulls holding onto the 101 handle
USD/JPY is currently trading within a 50 pip range, resisted by R2 territory just above the mid-point of the 101 handle, settled on 101.20 post last nights Japanese GDP, IP and today's US housing and manufacturing data.
However, the pair has been relatively stable despite the big miss in GDP from Japan for Q2 readings that arrived flat vs. 0.2% Q/Q expected. US housing came in line while the Empire States Manufacturing was a big miss.
"This week’s JPY risk should remain centered on the broader market tone as we note the absence of high-level domestic data. Wednesday’s trade may provide for some turbulence. Investors remain bullish JPY and investors have added to gross long JPY positions in 7 of the past 10 weeks," suggested analysts at Scotiabank.
USD/JPY levels
Current price is 101.20, with resistance ahead at 101.25 (Weekly Low), 101.46 (Daily Classic PP), 101.48 (Daily High), 101.51 (Hourly 100 SMA) and 101.57 (Hourly 200 SMA). Next support to the downside can be found at 101.18 (Hourly 20 EMA), 101.14 (Daily Open), 100.90 (Monthly Low), 100.87 (Daily Low) and 100.83 (Yesterday's Low). Looking at price patterns, we can see a Piercing Line 4-hour candlestick formation.