18 Nov 2013
Flash: USD/JPY holding steady above 100.00. What’s next? – Westpac and UBS
FXstreet.com (Edinburgh) - The greenback is paring earlier losses on Monday, managing to gather traction and lift the USD/JPY back above the triple-digit resistance, as risk aversion is creeping back to the markets.
“The return to a 100 handle is welcome vindication of our bias for yen weakness but the US story isn’t likely to provide much near term fuel for sharp gains in the pair. Crowded speculative positioning indicated by IMM data (specs last week holding equal longest USD/JPY since May) should act as a brake on USD/JPY appreciation”, observed the research team at Westpac Global Strategy Group.
In addition, strategists at the Swiss lender UBS remain bullish on the par, adding “the pair extends its strength approaching resistance at 100.61, a break above which would open 101.53. Support is at 99.11 ahead of 97.62”.
“The return to a 100 handle is welcome vindication of our bias for yen weakness but the US story isn’t likely to provide much near term fuel for sharp gains in the pair. Crowded speculative positioning indicated by IMM data (specs last week holding equal longest USD/JPY since May) should act as a brake on USD/JPY appreciation”, observed the research team at Westpac Global Strategy Group.
In addition, strategists at the Swiss lender UBS remain bullish on the par, adding “the pair extends its strength approaching resistance at 100.61, a break above which would open 101.53. Support is at 99.11 ahead of 97.62”.