15 Nov 2013
Flash: USD/JPY supported by technicals and timing - RBS
FXstreet.com (Barcelona) - According to Greg Gibbs, FX Strategist at RBS, the broad-based Yen weakness may have something to do "with the perception that the Fed’s QE is no longer open-ended - needs only a moderate increase in the outlook for sustainable employment growth to trigger a taper - while the BoJ’s relatively larger QE policy has no end insight" he said.
Other key quotes
"The other possible supportive factor for JPY is technicals and timing. I wouldn’t go so far as to claim a strong seasonal pattern but if USD/JPY were to rally now it would be a close mirror image of last year."
"Perhaps more significantly, USD/JPY has been consolidating in a narrowing range since May. And with the break of 99.01, November is the first month since May that USD/JPY has made a new high. The trading pattern since May has the look of a consolidation in preparation for another leg up from the rise that began this time last year."
"The next significant test for USD/JPY will be the September high of 100.61. A break here would further boost confidence that USD/JPY is renewing its rising trend. Support now should be the October high of 99.01."
Other key quotes
"The other possible supportive factor for JPY is technicals and timing. I wouldn’t go so far as to claim a strong seasonal pattern but if USD/JPY were to rally now it would be a close mirror image of last year."
"Perhaps more significantly, USD/JPY has been consolidating in a narrowing range since May. And with the break of 99.01, November is the first month since May that USD/JPY has made a new high. The trading pattern since May has the look of a consolidation in preparation for another leg up from the rise that began this time last year."
"The next significant test for USD/JPY will be the September high of 100.61. A break here would further boost confidence that USD/JPY is renewing its rising trend. Support now should be the October high of 99.01."