Thursday, 24 May 2012

USD/JPY ahead US data released may 24 2012

forex trading outlook today - USD/JPY ahead US data released may 24 2012 : USD/JPY remains flat ahead of the Wall Street opening, trading virtually unchanged on the day as the market saw limited dollar reaction to durable goods and jobless claims data that came in mostly in line with expectations.

USD/JPY has been trading inside a thin range on Thursday, having fallen to a low of 79.33 only to bounce back to opening levels. At time of writing, USD/JPY is quoting at the 79.40/45 zone, where the 20-hour SMA is offering resistance.

From a technical view, "After failure to regain important 80.00 zone, short-term focus turned lower. Break below 79.20/00 supports to open way for further extension of larger downtrend from 84.17 and expose dynamic support of 200 day MA at 78.50, next", said Slobodan Drvenica, analyst at Windsor Brokers Ltd. "Upside remains capped at 80.00 zone and only break here would delay bears for possible extension towards another significant barrier at 80.60".

In the macroeconomic domain, US durable goods orders rose 0.2% in April versus a 0.7% increase expected, while initial jobless claims dropped by 2,000 last week.

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