2 Jun 2014
USD/JPY closes the gap, undefined bias
FXStreet (Bali) - USD/JPY opened the week with a 10 pip up-gap printing its highest for the session at 101.87 before closing the gap by returning to 101.77.
The Japanese Yen remains in an undefined bias against the US Dollar, with the recovery off lows in the US bond yields coupled with new all-time highs in the S&P500 favoring the upside potential in the pair, while Japan’s first nationwide consumer price index post a sales tax hike - published last week -, which came stronger-than-expected, suggests that chances of further QQE by the BoJ in the near future are getting slimmer, a development that should be an important factor supporting the Yen.
Technically, the daily chart shows the pair having carved out a well defined range of approximately 2 cents between 100.80 and 102.70, with a breakout of either extreme necessary to set the next direction.
The Japanese Yen remains in an undefined bias against the US Dollar, with the recovery off lows in the US bond yields coupled with new all-time highs in the S&P500 favoring the upside potential in the pair, while Japan’s first nationwide consumer price index post a sales tax hike - published last week -, which came stronger-than-expected, suggests that chances of further QQE by the BoJ in the near future are getting slimmer, a development that should be an important factor supporting the Yen.
Technically, the daily chart shows the pair having carved out a well defined range of approximately 2 cents between 100.80 and 102.70, with a breakout of either extreme necessary to set the next direction.