18 Jul 2013
USD/JPY keeps highs around 100.60
FXstreet.com (Barcelona) -The Japanese yen is depreciating against its American counterpart for the second straight session, lifting the USD/JPY to fresh multi-day highs around 100.60.
USD/JPY vs. Parliamentary elections
Consensus regarding Sunday’s upper chamber elections in Japan points to a victory from the coalition government led by PM S.Abe, paving the way for a continuation of the current economic and political course. “This will end the split in the Diet and ensure Abe has the legislative support for his economic program… There is a potential down trend line for the dollar that connects the late May high near JPY103.75 and this month's high near JPY101.55, which comes in just below JPY101 on Monday. We expect this trend line to be penetrated and for the dollar to test the JPY102.00-JPY102.50 area”, commented BBH Global Currency Strategy Team.
USD/JPY key levels
The pair is now advancing 1.03% at 100.62 with the next resistance at 100.75 (76.4% of 101.54-98.20) followed by 101.00 (down TL from 103.74) and finally 101.22 (high Jul.10). On the flip side a breach of 99.87 (daily Tenkan) would expose 99.47 (low Jul.18) and then 99.04 (low Jul.17).
USD/JPY vs. Parliamentary elections
Consensus regarding Sunday’s upper chamber elections in Japan points to a victory from the coalition government led by PM S.Abe, paving the way for a continuation of the current economic and political course. “This will end the split in the Diet and ensure Abe has the legislative support for his economic program… There is a potential down trend line for the dollar that connects the late May high near JPY103.75 and this month's high near JPY101.55, which comes in just below JPY101 on Monday. We expect this trend line to be penetrated and for the dollar to test the JPY102.00-JPY102.50 area”, commented BBH Global Currency Strategy Team.
USD/JPY key levels
The pair is now advancing 1.03% at 100.62 with the next resistance at 100.75 (76.4% of 101.54-98.20) followed by 101.00 (down TL from 103.74) and finally 101.22 (high Jul.10). On the flip side a breach of 99.87 (daily Tenkan) would expose 99.47 (low Jul.18) and then 99.04 (low Jul.17).