18 Jul 2013
USD/JPY through 100.00
FXstreet.com (Barcelona) - USD/JPY has reverted above the 100.00 handle and has reached a high of 100.23 in the European opening hour.
Bernanke is the major risk event to the pair again today, but is unlikely to make any comments to Congress that we don’t already know and we now understand that US data will be key in determining the timing of the taping which the Fed would like to commence at an appropriate time. So long as low inflation and the evolution of US data doesn’t get in the way, if the US continues to perform as expected, tapering will start later this year, most likely September and QE will end by the middle of 2014. Kit.In terms of data releases today, eye son Philly Fed and Initial Jobless Claims. Juckes Head of Currency Strategy for Societe Generale said “USD/JPY needs to break 100.50 to have any chance of getting out of its current range but the Upper House election is approaching and could be catalyst. A weak rally in treasuries and further equity market gains spell Yen softness to me”.
USD/JPY continues to falter
USD/JPY continues to falter ahead of its 101.60 78.6% retracement and attention remains on the base of the cloud circa 98.15, said Karen Jones, Analyst at Commerzbank. “It remains sandwiched between these two levels, but we suspect that overall risk is on the downside”. She explained, should the base of the cloud be eroded, it will leave the market under pressure and likely to slide back to 96.75/95.40 en route to the 93.75 recent low.
Bernanke is the major risk event to the pair again today, but is unlikely to make any comments to Congress that we don’t already know and we now understand that US data will be key in determining the timing of the taping which the Fed would like to commence at an appropriate time. So long as low inflation and the evolution of US data doesn’t get in the way, if the US continues to perform as expected, tapering will start later this year, most likely September and QE will end by the middle of 2014. Kit.In terms of data releases today, eye son Philly Fed and Initial Jobless Claims. Juckes Head of Currency Strategy for Societe Generale said “USD/JPY needs to break 100.50 to have any chance of getting out of its current range but the Upper House election is approaching and could be catalyst. A weak rally in treasuries and further equity market gains spell Yen softness to me”.
USD/JPY continues to falter
USD/JPY continues to falter ahead of its 101.60 78.6% retracement and attention remains on the base of the cloud circa 98.15, said Karen Jones, Analyst at Commerzbank. “It remains sandwiched between these two levels, but we suspect that overall risk is on the downside”. She explained, should the base of the cloud be eroded, it will leave the market under pressure and likely to slide back to 96.75/95.40 en route to the 93.75 recent low.