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11 Jun 2013
USD/JPY finds support around 96.50
FXstreet.com (Barcelona) - The USD/JPY continues to grind lower on Tuesday, as the renewed strength in the Japanese yen is taking a toll on the pair, dragging it from overnight highs around 99.00 the figure.
BoJ, JGB weighting
Recall that the BoJ left no room for surprises in today’s meeting, leaving its monetary policy intact and sparking a sharp appreciation in both the JPY and JGB yields as a consequence. “We do believe that ‘Abenomics’ as a driver of yen depreciation is certainly fading but further notable yen gains also seem unlikely. The US economy and progress on structural reform will be important factors in the coming months”, explained Derek Halpenny, European Head of Global Markets Research at BTMU.
Critical levels to watch
As of writing, the pair is down 1.77% at 97.03 with the next support at 96.48 (low Jun.11) followed by 95.40 (cloud base) and then 94.98 (low Jun.7). On the upside, a break above 99.05 (high Jun.11) would target 99.29 (high Jun.10) en route to 99.36 (Kijun Sen line).
BoJ, JGB weighting
Recall that the BoJ left no room for surprises in today’s meeting, leaving its monetary policy intact and sparking a sharp appreciation in both the JPY and JGB yields as a consequence. “We do believe that ‘Abenomics’ as a driver of yen depreciation is certainly fading but further notable yen gains also seem unlikely. The US economy and progress on structural reform will be important factors in the coming months”, explained Derek Halpenny, European Head of Global Markets Research at BTMU.
Critical levels to watch
As of writing, the pair is down 1.77% at 97.03 with the next support at 96.48 (low Jun.11) followed by 95.40 (cloud base) and then 94.98 (low Jun.7). On the upside, a break above 99.05 (high Jun.11) would target 99.29 (high Jun.10) en route to 99.36 (Kijun Sen line).