FX News - May 12 2014: Bumpy Monday for USD/JPY

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It’s been a bumpy Monday for the USD/JPY pair today as it attempted to return to the 102.00 area. The pair got a lift early in today’s Asian session after Japan posted its trade data and revealed that the account surplus in the year that ended in March was the smallest on record. This brought it to today’s high at 102.04. It only held the 102.00 level briefly, however, as the pair began to decline as the Asian trading progressed.

The USD/JPY pair is currently trading 101.88, with initial resistance seen at 102.03, followed by 102.28. Meanwhile, initial support is at 101.70, followed by 101.45.

Later this week, Japan will release its GDP data for Q1, with the GDP expected to grow by 1.0% compared to the previous quarter, while the annualised GDP is seen to grow by 4.2% in Q1.

As for the AUD/USD, the pair remained fairly flat, and continued to hover within the very tight 0.9350-0.9375 range similar to last Friday’s levels.

Earlier today the National Australia Bank (NAB) released its business confidence and business conditions numbers, which came out at 6 (previously 4), and zero (previously 1), respectively. Tomorrow, the main driver for the aussie will be the release of Australia’s budget (9:30AM, GMT), as well as a number of housing related data (1:30AM, GMT), wherein home loans in March are expected to drop by 1.5% compared to the previous month.

The AUD/USD pair opened today’s Asian session at 0.9356, before dropping to a low of 0.9348 after the release of NAB’s business conditions and confidence data. It has since climbed up as the day progressed, and has so far peaked at 0.9372. It is currently trading at 0.9369, with initial resistance seen at 0.9372, followed by 0.9395. Meanwhile, initial support is at 0.9336, followed by 0.9312.

By FX Strategy Team, Published on 12th of May 2014
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