21 Aug 2013
USD/JPY fresh highs
FXstreet.com (Barcelona) - USD/JPY has printed fresh highs at 97.71 and remains bid towards mid morning NA.
Gareth Berry at UBS FX strategy said, “Is the current pace of BoJ buying sufficient to support the JGB market
in the face of an even more aggressive UST selloff? Yes, we believe so. It has now been over four months since BoJ Governor Kuroda unveiled his QQE policy on April 4th, and enough time has passed to allow a meaningful comparison between the pace of JGB issuance by the Ministry of Finance and the pace of JGB purchases by the BoJ…there is plenty USDJPY still to come. Our 3m USDJPY forecast stands at 105”. The focus today will be the minutes from the July 30-31 FOMC as the market looks for signals in timing and scale of the Fed’s plans to taper its current QE policy.
USD/JPY Levels with a bullish bias
20 DMA is 97.77, 50 DMA is 98.35, and the 200 DMA is 94.12. RSI (14) reads 54.48. Supports are ascending from 95.81, 95.92, 96.40, 96.88. Spot is currently 97.67 and resistances are 97.89, 98.13 and 98.28 and at 98.67, a close above this would extend the recent strength to 99.95 and then 101.53.
Gareth Berry at UBS FX strategy said, “Is the current pace of BoJ buying sufficient to support the JGB market
in the face of an even more aggressive UST selloff? Yes, we believe so. It has now been over four months since BoJ Governor Kuroda unveiled his QQE policy on April 4th, and enough time has passed to allow a meaningful comparison between the pace of JGB issuance by the Ministry of Finance and the pace of JGB purchases by the BoJ…there is plenty USDJPY still to come. Our 3m USDJPY forecast stands at 105”. The focus today will be the minutes from the July 30-31 FOMC as the market looks for signals in timing and scale of the Fed’s plans to taper its current QE policy.
USD/JPY Levels with a bullish bias
20 DMA is 97.77, 50 DMA is 98.35, and the 200 DMA is 94.12. RSI (14) reads 54.48. Supports are ascending from 95.81, 95.92, 96.40, 96.88. Spot is currently 97.67 and resistances are 97.89, 98.13 and 98.28 and at 98.67, a close above this would extend the recent strength to 99.95 and then 101.53.