29 May 2014
USD/JPY supported around 101.50
FXStreet (Edinburgh) - The Japanese yen is extending its bullish momentum vs. the US dollar on Thursday, dragging the USD/JPY to session lows around the mid-101.00s.
USD/JPY lower on yields
The ongoing drop in US Treasuries coupled with lower yields in emerging markets has given extra wings to the Japanese currency, extending the correction lower from weekly peaks around 102.10/15. Next of relevance in Japan will be the key inflation figures for the month of April followed by the unemployment rate (3.6% exp.). “The 55-day MA (102.18) may cap and below 101.50, expect the 200-d MA (101.39) to offer interim support pending further cues. The pair’s behavior has remained a function of US yields and in this environment, a top heavy posture may persist”, noted Emmanuel Ng, FX Strategist at OCBC Bank.
USD/JPY levels to consider
As of writing the pair is losing 0.50% at 101.53 with the immediate support at 101.36 (low May 22) ahead of 100.81 (low May 21) and then 100.76 (2014 low Feb.4). On the other hand, a break above 101.86 (high May 29) would aim for 102.03 (high May 28) and finally 102.14 (high May 27).
USD/JPY lower on yields
The ongoing drop in US Treasuries coupled with lower yields in emerging markets has given extra wings to the Japanese currency, extending the correction lower from weekly peaks around 102.10/15. Next of relevance in Japan will be the key inflation figures for the month of April followed by the unemployment rate (3.6% exp.). “The 55-day MA (102.18) may cap and below 101.50, expect the 200-d MA (101.39) to offer interim support pending further cues. The pair’s behavior has remained a function of US yields and in this environment, a top heavy posture may persist”, noted Emmanuel Ng, FX Strategist at OCBC Bank.
USD/JPY levels to consider
As of writing the pair is losing 0.50% at 101.53 with the immediate support at 101.36 (low May 22) ahead of 100.81 (low May 21) and then 100.76 (2014 low Feb.4). On the other hand, a break above 101.86 (high May 29) would aim for 102.03 (high May 28) and finally 102.14 (high May 27).