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19 Aug 2013
USD/JPY reaches 98.00
FXstreet.com (Edinburgh) -The USD/JPY is prolonging the intraday upside, lifting the USD/JPY to current peaks around 98.00 the figure.
USD/JPY focus on FOMC minutes
The Japanese yen is losing ground after the trade deficit widened to ¥994.0 billion during June, with exports expanding 12.2% - below estimates – and imports 19.6%. The broader debate in the Japanese economy continues to circle around the likeliness of a hike in the sales tax in April 2014,mainly after the disappointment post-GDP report. “The BoJ’s fundamental shift in monetary policy will continue to favour a weaker JPY. However, in the near term uncertainty about sales tax hikes is likely to weigh on USD/JPY and we do not expect to see a break above the May high at 103.52 in the coming months… We have revised down our medium-term forecasts and now target USD/JPY at 99 and 103 in 3M and 6M, respectively”, commented Morten Helt, Senior Analyst at Danske Bank.
USD/JPY key levels
The pair is now advancing 0.33% at 97.97 facing the next hurdle at 98.43 (Kijun-Sen line) followed by 98.66 (high Aug.15) and then 98.75 (cloud base). On the flip side, a breach of 97.36 (low Aug.19) would open the door to 97.05 (low Aug.16) and finally 97.00 (low Aug.15).
USD/JPY focus on FOMC minutes
The Japanese yen is losing ground after the trade deficit widened to ¥994.0 billion during June, with exports expanding 12.2% - below estimates – and imports 19.6%. The broader debate in the Japanese economy continues to circle around the likeliness of a hike in the sales tax in April 2014,mainly after the disappointment post-GDP report. “The BoJ’s fundamental shift in monetary policy will continue to favour a weaker JPY. However, in the near term uncertainty about sales tax hikes is likely to weigh on USD/JPY and we do not expect to see a break above the May high at 103.52 in the coming months… We have revised down our medium-term forecasts and now target USD/JPY at 99 and 103 in 3M and 6M, respectively”, commented Morten Helt, Senior Analyst at Danske Bank.
USD/JPY key levels
The pair is now advancing 0.33% at 97.97 facing the next hurdle at 98.43 (Kijun-Sen line) followed by 98.66 (high Aug.15) and then 98.75 (cloud base). On the flip side, a breach of 97.36 (low Aug.19) would open the door to 97.05 (low Aug.16) and finally 97.00 (low Aug.15).