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26 Jun 2013
USD/JPY is on the back foot
FXstreet.com (Barcelona) - USD/JPY has printed a high of 98.26 overnight and has failed to sustain those gains, to open in London on the back foot recording an hourly stick low 97.36 so far.
Gareth Berry at UBS said a weaker Yen Beckons On JGB Stability. He suggested that Subdued JGB yields at a time when yields are rising elsewhere is a recipe for yen weakness, and thanks to last week's FOMC decision, events seem to be unfolding along these lines. Eyes are on US US GDP Q1 annulised this afternoon.
USD/JPY below 55 day ma
USD/JPY continues to hold just below the 55 day ma at 99.09 according to Karen Jones, analyst at commerzbank. “We continue to view near term strength as corrective only and favour a retest of 93.58 Fibonacci retracement. Failure at 93.58 is expected to trigger losses to the 50% retracement at 90.43”. She said we have conflicting evidence on the intraday charts and our conviction is low at this point and it is possible that we will see a small erosion through 98.80 towards the 100.00 zone, where we suspect that the rally will again struggle. She feels only an unexpected CLOSE above the 100.00 could neutralise their outlook and imply another test of the 103.74 May high.
Gareth Berry at UBS said a weaker Yen Beckons On JGB Stability. He suggested that Subdued JGB yields at a time when yields are rising elsewhere is a recipe for yen weakness, and thanks to last week's FOMC decision, events seem to be unfolding along these lines. Eyes are on US US GDP Q1 annulised this afternoon.
USD/JPY below 55 day ma
USD/JPY continues to hold just below the 55 day ma at 99.09 according to Karen Jones, analyst at commerzbank. “We continue to view near term strength as corrective only and favour a retest of 93.58 Fibonacci retracement. Failure at 93.58 is expected to trigger losses to the 50% retracement at 90.43”. She said we have conflicting evidence on the intraday charts and our conviction is low at this point and it is possible that we will see a small erosion through 98.80 towards the 100.00 zone, where we suspect that the rally will again struggle. She feels only an unexpected CLOSE above the 100.00 could neutralise their outlook and imply another test of the 103.74 May high.