12 Feb 2014
USD/JPY remains supported on Yellen
FXStreet (Guatemala) - The USD/JPY has ticked up a little from a drift and a drop lower away from bullish territory on the 102 handle.
The markets have remained in Yellen mode and Derek Halpenny at The Bank of Tokyo-Mitsubishi UFJ, Ltd explained a couple of key comments from Yellen in her testimony. She “strongly supported” the current FOMC policy stance. “This was a clear message to Congress not to worry about the concern of a Yellen-FOMC abandoning price stability in favour of being more aggressive in achieving better labour market conditions. That plus the confirmation that tapering would continue going forward left little doubt that the change at the top of the FOMC would not mean a change in policy”. This is giving support to risk appetite, the dollar and USD/JPY. "The USD/JPY was further helped yesterday by the refusal of Yellen to criticise Japan for its conduct of monetary policy that has fuelled yen depreciation", explained Derek Halpenny. “Members of the House kept pushing for this but Yellen kept to the G7 line that as long as monetary policy was focused on domestic policies in Japan then the steps taken to end deflation would benefit all”. There has been little from the US today but Derek Halpenny noted that 28 Republicans joined Democrats yesterday in the House to pass a no-strings attached suspension of the debt-ceiling until March 2015 by 221-201. “This of course is good news and reinforces the potential for a rebound in growth after a weak Q1”.
USD/JPY Levels
The 20 DMA is 102.88, the 50 DMA is 103.46 and the 200 DMA is 100.15. RSI (14) reads 44.60. Supports are ascending from 101.77, 101.90, 102.08, 102.35. Spot is 102.50 while resistances are 102.77, 102.94, 103.10 and 103.45.
The markets have remained in Yellen mode and Derek Halpenny at The Bank of Tokyo-Mitsubishi UFJ, Ltd explained a couple of key comments from Yellen in her testimony. She “strongly supported” the current FOMC policy stance. “This was a clear message to Congress not to worry about the concern of a Yellen-FOMC abandoning price stability in favour of being more aggressive in achieving better labour market conditions. That plus the confirmation that tapering would continue going forward left little doubt that the change at the top of the FOMC would not mean a change in policy”. This is giving support to risk appetite, the dollar and USD/JPY. "The USD/JPY was further helped yesterday by the refusal of Yellen to criticise Japan for its conduct of monetary policy that has fuelled yen depreciation", explained Derek Halpenny. “Members of the House kept pushing for this but Yellen kept to the G7 line that as long as monetary policy was focused on domestic policies in Japan then the steps taken to end deflation would benefit all”. There has been little from the US today but Derek Halpenny noted that 28 Republicans joined Democrats yesterday in the House to pass a no-strings attached suspension of the debt-ceiling until March 2015 by 221-201. “This of course is good news and reinforces the potential for a rebound in growth after a weak Q1”.
USD/JPY Levels
The 20 DMA is 102.88, the 50 DMA is 103.46 and the 200 DMA is 100.15. RSI (14) reads 44.60. Supports are ascending from 101.77, 101.90, 102.08, 102.35. Spot is 102.50 while resistances are 102.77, 102.94, 103.10 and 103.45.