19 Jul 2013
USD/JPY drifting higher
FXstreet.com (London) - USD/JPY opened the European session testing the downside and 100.00 handle but has since resumed higher.
USD/JPY is performing steadily, breaching the 100.40 resistance area in this moment of writing and recovering some lost ground from overnight. Kit Juckes, Global Head of Currency Strategy at Societe Generale noted that the Nikkei suffered a Friday flop ahead of this weekend’s Upper House elections; “... a reminder that while control of both houses would give PM Abe freedom to push through policies that should see the yen weaken significantly further, then a disappointing result will weaken equities and boost the currency. I think the move to USD/JPY 110 starts on Monday. The overnight data saw leading indicators gain a little and Japanese investors sell foreign bonds”.
USD/JPY to test the three-month resistance line?
The pair reached a high of over 100.80 over night but was capped there, and only a rise through there 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 is performing steadily, breaching the 100.40 resistance area in this moment of writing and recovering some lost ground from overnight. Kit Juckes, Global Head of Currency Strategy at Societe Generale noted that the Nikkei suffered a Friday flop ahead of this weekend’s Upper House elections; “... a reminder that while control of both houses would give PM Abe freedom to push through policies that should see the yen weaken significantly further, then a disappointing result will weaken equities and boost the currency. I think the move to USD/JPY 110 starts on Monday. The overnight data saw leading indicators gain a little and Japanese investors sell foreign bonds”.
USD/JPY to test the three-month resistance line?
The pair reached a high of over 100.80 over night but was capped there, and only a rise through there 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.