11 Oct 2013
USD/JPY rips higher Thursday on flight from the Yen safety trade
FXstreet.com (Barcelona) - The USD/JPY continued higher for a third straight session Thursday and saw the upside momentum pick up in the process as money leaking out of the Yen turned into a flash flood out of the Yen.
USD/JPY up on greenback short covering and Yen longs taking profits
The up move in USD/JPY had already started prior to Thursday’s news out of DC, but the headlines caused a global shift in sentiment from “risk-off” to “risk-on” – affecting the long-Yen side of the USD/JPY equation. The news, however, also put a (temporary?) halt to the Armageddon-US trade that had investors selling US stocks and US Dollars. The reversal in that trade caused the rally in stocks and the DXY and affected the USD part of the USD/JPY cross bullishly. The combined effect caused the biggest gain in USD/JPY since September 19th.
Technical outlook for USD/JPY
Technicians note that the next two key resistance levels in USD/JPY come in at 99.00 and 99.50. The near-term support for USD/JPY comes in the form of Fibonacci retracements at 97.90 and 97.65.
USD/JPY up on greenback short covering and Yen longs taking profits
The up move in USD/JPY had already started prior to Thursday’s news out of DC, but the headlines caused a global shift in sentiment from “risk-off” to “risk-on” – affecting the long-Yen side of the USD/JPY equation. The news, however, also put a (temporary?) halt to the Armageddon-US trade that had investors selling US stocks and US Dollars. The reversal in that trade caused the rally in stocks and the DXY and affected the USD part of the USD/JPY cross bullishly. The combined effect caused the biggest gain in USD/JPY since September 19th.
Technical outlook for USD/JPY
Technicians note that the next two key resistance levels in USD/JPY come in at 99.00 and 99.50. The near-term support for USD/JPY comes in the form of Fibonacci retracements at 97.90 and 97.65.