11 Oct 2013
USD/JPY retreats from highs
FXstreet.com (Edinburgh) -The USD/JPY is extending its weekly gains since Tuesday, hovering over 98.30/35 after hitting weekly highs overnight near 98.60.
USD/JPY propped up by risk appetite
The positive news regarding the likeliness of a solution for the US fiscal stand-off would be bolstering the current risk-on momentum, weakening the yen and adding further upside pressure to the pair. According to Derek Halpenny, European Head of Global Markets Research at BTMU, “Certainly, less uncertainty and improving financial market conditions would be helpful for weakening the yen… The window for yen weakness may be small so USD/JPY gains from here will become more difficult to sustain over the 99.00 level”.
USD/JPY levels to watch
The pair is now advancing 0.17% at 98.35 facing the next resistance at 98.58 (MA100d) followed by 98.68 (cloud top) and finally 98.73 (high Oct.1). On the flip side, a breakdown of 97.91 (low Oct.11) would aim for 97.64 (Tenkan Sen line) and then 97.35 (low Oct.10).
USD/JPY propped up by risk appetite
The positive news regarding the likeliness of a solution for the US fiscal stand-off would be bolstering the current risk-on momentum, weakening the yen and adding further upside pressure to the pair. According to Derek Halpenny, European Head of Global Markets Research at BTMU, “Certainly, less uncertainty and improving financial market conditions would be helpful for weakening the yen… The window for yen weakness may be small so USD/JPY gains from here will become more difficult to sustain over the 99.00 level”.
USD/JPY levels to watch
The pair is now advancing 0.17% at 98.35 facing the next resistance at 98.58 (MA100d) followed by 98.68 (cloud top) and finally 98.73 (high Oct.1). On the flip side, a breakdown of 97.91 (low Oct.11) would aim for 97.64 (Tenkan Sen line) and then 97.35 (low Oct.10).