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Forex: USD/JPY eases off of session highs towards 93.84/85

The USD/JPY has had quite a run Thursday, storming ahead to a session high of 93.93 during European trading, before easing back towards the 93.84/85 mark at the time of writing. At this juncture the pair has notched an advance of +0.23% above its opening.

Technically speaking, after breaking above the 93.70 resistance level, the USD/JPY is slated to meet additional calculated resistance at 94.02 onto 94.50 and finally 94.97. Conversely, any prolonged setback south of the 93.36 region will trigger supports down to 93.17 and the key 93.00 barrier, notes Slobodan Drvenica, an analyst at Windsor Brokers Ltd.

According to Sean Callow, a Global Strategist at Westpac, “the escalation of tensions between China and Japan has the makings of a recipe for a period of ¥ strength. So, we maintain a sell bias on the USD/JPY for another week, however our patience is wearing very thin. If the G20 does not raise any concerns about ¥ weakness next week, we will be forced to shift back to neutral.”

Forex Flash: EUR/USD may rise on ECB message – TD Securities

All eyes will be pointed at the ECB rate decision and President Draghi’s press conference later today, with a slim chance for a complacent EUR/USD during the Q&A. “With no specific comments on the euro (our expectation) will be taken as a complacent attitude against the strong currency (EUR/USD up), while we see only a 25% chance Draghi tries to mildly manage the pace of EUR appreciation and only a 2% chance he does something as drastic as suggest the moves have been “brutal,” which could potentially take EUR/USD a big figure lower to 1.3450”, wrote analyst Cristian Maggio, seeing scope for bidirectional moves.
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