5 Sep 2013
USD/JPY backs off 100.00
FXstreet.com (Edinburgh) -The Japanese yen resumed its depreciation against its American counterpart on Thursday, now dragging the USD/JPY from previous intraday peaks beyond the triple-digit resistance.
USD/JPY bolstered by the BoJ
Broadly in lines with market estimates, the BoJ left unchanged its monetary stance in today’s meeting, underlying the moderate pace of the economic recovery. According to Derek Halpenny, European Head of Global Markets Research at BTMU, “USD/JPY is broadly stable just below the 100.00 level and with the ADP employment report today and the NFP report tomorrow, a break higher is probable as long as the employment data is consistent with a stable labour market that gives the Fed the signal to start tapering… If the recent volatility in certain emerging market currencies can subside, that would be another factor that could help lift USD/JPY through the 100.00 level”.
USD/JPY levels to consider
As of writing the pair is advancing 0.17% at 99.91 with the next hurdle at 100.19 (76.4% of 101.54-95.81) ahead of 100.45 (highs Jul.24/25) and finally 101.05 (high Jul.22). On the downside, a drop beyond 99.43 (cloud top) would aim for 99.32 (low Sep.4) and then 99.17 (low Sep.3).
USD/JPY bolstered by the BoJ
Broadly in lines with market estimates, the BoJ left unchanged its monetary stance in today’s meeting, underlying the moderate pace of the economic recovery. According to Derek Halpenny, European Head of Global Markets Research at BTMU, “USD/JPY is broadly stable just below the 100.00 level and with the ADP employment report today and the NFP report tomorrow, a break higher is probable as long as the employment data is consistent with a stable labour market that gives the Fed the signal to start tapering… If the recent volatility in certain emerging market currencies can subside, that would be another factor that could help lift USD/JPY through the 100.00 level”.
USD/JPY levels to consider
As of writing the pair is advancing 0.17% at 99.91 with the next hurdle at 100.19 (76.4% of 101.54-95.81) ahead of 100.45 (highs Jul.24/25) and finally 101.05 (high Jul.22). On the downside, a drop beyond 99.43 (cloud top) would aim for 99.32 (low Sep.4) and then 99.17 (low Sep.3).