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27 Jan 2014
USD/JPY bounced off 102.20
FXstreet.com (Edinburgh) - The USD/JPY is now returning to the 102.45/50 area on Monday, coming back from the 102.20 region.
USD/JPY trimming earlier gains
The pair advanced to fresh intraday highs near 103.00 the figure during the European afternoon, although the upside run out of steam soon afterwards, falling to the vicinity of 102.00. Jane Foley, Senior FX Strategist at Rabobank, noted that “While the flow out of EM has been a trigger for the move back into the yen, we would argue that the weight of short position in the yen has contributed to its stronger tone… In view of the current uncertainties surrounding EMU, there is a strong risk that further short covering in the yen will lend it support near-term. Cloud base lies at USD/JPY100.79. That said, the risk of further policy action from the BoJ suggests that USD/JPY is still likely the end Q1 higher”.
USD/JPY key levels
The pair is now up 0.24% at 102.50 with the next resistance at 102.97 (low Jan.23) ahead of 103.97 (low Jan.22) and finally 104.15 (200-h MA). On the downside, a violation of 102.00 (low Jan.24) would allow 101.76 (38.2% of 95.81-105.45) and then 101.62 (low Dec.5).
USD/JPY trimming earlier gains
The pair advanced to fresh intraday highs near 103.00 the figure during the European afternoon, although the upside run out of steam soon afterwards, falling to the vicinity of 102.00. Jane Foley, Senior FX Strategist at Rabobank, noted that “While the flow out of EM has been a trigger for the move back into the yen, we would argue that the weight of short position in the yen has contributed to its stronger tone… In view of the current uncertainties surrounding EMU, there is a strong risk that further short covering in the yen will lend it support near-term. Cloud base lies at USD/JPY100.79. That said, the risk of further policy action from the BoJ suggests that USD/JPY is still likely the end Q1 higher”.
USD/JPY key levels
The pair is now up 0.24% at 102.50 with the next resistance at 102.97 (low Jan.23) ahead of 103.97 (low Jan.22) and finally 104.15 (200-h MA). On the downside, a violation of 102.00 (low Jan.24) would allow 101.76 (38.2% of 95.81-105.45) and then 101.62 (low Dec.5).