FX News - May 28 2014: USD/JPY Briefly Returns to 102

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Positive economic data helped lift the USD/JPY pair to the 102.00 level in yesterday’s session, but held on to it only briefly. Some of the data released yesterday included US Durable Goods Orders in April, where it was up by 0.8 per cent, which was better than the expected contraction by 0.5 percent. The same data but without Transportation was up by 0.1 per cent, where it was expected to remain flat. Meanwhile, the US Housing Price Index in March was also up by 0.7 per cent over the previous month, where 0.5 per cent was expected. May’s Marikit Services PMI was at 58.4, where 55.6 was expected. Then finally, Consumer Confidence in May was within expectations at 83.0, which was higher than the previous month’s 81.7.

These figures helped boost the USD/JPY pair past the 102.00 area, peaking at 102.14. It was unable to sustain the level, however, as the trading day closed. It opened today’s Asian session at 101.98, before slipping down again. It is currently trading at 101.90, with initial resistance seen at 102.29, followed by 102.55. Meanwhile, initial support is at 101.85, followed by 101.60.

The strong greenback pulled down the AUD/USD pair in yesterday’s European session, which brought it to Monday’s levels under the 0.9240 area. This came after the pair spent much of the Asian and European session well above the 0.9250 zone. The drop was only temporary, however, as it hovered around the 0.9260 area until the trading day ended. It opened today’s Asian session at 0.9264, and is currently trading at 0.9260. Initial resistance for the pair is at 0.9293, followed by 0.9316. Meanwhile, initial support is at 0.9245, followed by 0.9222.

By FX Strategy Team, Published on 28th of May 2014
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