19 Jul 2013
USD/JPY clinging to 100.00 handle
FXstreet.com (London) - USD/JPY reached a high of 100.85 overnight but had since fallen away to challenge the downside and the 100.00 handle.
USD/JPY has been climbing higher this week, starting out sub 99.00 and gaining around 200 pips. US CPI offered the dollar a boost in the pair earlier to start this week. That coupled with better performances in the UK and Bernanke testifying has seen the pair drift higher. Then we also had BoJ minutes. The members were split on inflation targets and the possible measures that could be taken to decrease recent volatility in rates and how to stabalise their stock markets. The dollar is lower across most G10’s and overnight and we saw that Japan is a net buyer of foreign bonds, adding ¥1105.7b to their portfolio, after ¥973b last week. This follows seven consecutive months of net sales. Nevertheless, the pair is lower this morning and into the London open.
The three-month resistance line capped USD/JPY
Only a rise through the recent high would offer 101.60, the 78.6% retracement, in reach. Currently, the base of the cloud is drawing closer at near to 98.15. If this area is breached the downside to 96.75/95.40 could come back into play with sights for the 93.75
area and recent lows.
USD/JPY has been climbing higher this week, starting out sub 99.00 and gaining around 200 pips. US CPI offered the dollar a boost in the pair earlier to start this week. That coupled with better performances in the UK and Bernanke testifying has seen the pair drift higher. Then we also had BoJ minutes. The members were split on inflation targets and the possible measures that could be taken to decrease recent volatility in rates and how to stabalise their stock markets. The dollar is lower across most G10’s and overnight and we saw that Japan is a net buyer of foreign bonds, adding ¥1105.7b to their portfolio, after ¥973b last week. This follows seven consecutive months of net sales. Nevertheless, the pair is lower this morning and into the London open.
The three-month resistance line capped USD/JPY
Only a rise through the recent high would offer 101.60, the 78.6% retracement, in reach. Currently, the base of the cloud is drawing closer at near to 98.15. If this area is breached the downside to 96.75/95.40 could come back into play with sights for the 93.75
area and recent lows.