11 Jul 2013
USD/JPY suffers big losses
FXstreet.com (London) - USD/JPY suffered big losses from over 101.00 to print a low of 98.24 late in the Asian shift.
The move came of a broad based dollar sell off after the FOMC minutes. Robert Henderson at NAB markets research said the Fed Minutes showed that "many members indicated that further improvement in the outlook for the labour market would be required before it would be appropriate to slow the pace of asset purchases.” However, "some" members said they would want to see more evidence that the projected acceleration in economic activity was happening before taking that action. But "several members judged that a reduction in asset purchases would
likely soon be warranted".
USD/JPY failing to base of cloud
Karen Jones, Chief Analyst at Commerzbank said USD/JPY has seen major failure at the 78.6% retracement at 101.60 and has sold off to the base of the cloud circa 98.15. “While it is possible that this will hold the initial test, should this be eroded it will leave the market under pressure and likely to slide back to 96.75/95.40 en route to the 93.75 recent low”. She explained the top of the cloud lies at 100.55 and the 78.6% Fibonacci retracement at 101.60.
The move came of a broad based dollar sell off after the FOMC minutes. Robert Henderson at NAB markets research said the Fed Minutes showed that "many members indicated that further improvement in the outlook for the labour market would be required before it would be appropriate to slow the pace of asset purchases.” However, "some" members said they would want to see more evidence that the projected acceleration in economic activity was happening before taking that action. But "several members judged that a reduction in asset purchases would
likely soon be warranted".
USD/JPY failing to base of cloud
Karen Jones, Chief Analyst at Commerzbank said USD/JPY has seen major failure at the 78.6% retracement at 101.60 and has sold off to the base of the cloud circa 98.15. “While it is possible that this will hold the initial test, should this be eroded it will leave the market under pressure and likely to slide back to 96.75/95.40 en route to the 93.75 recent low”. She explained the top of the cloud lies at 100.55 and the 78.6% Fibonacci retracement at 101.60.