2 Dec 2014
USD/JPY backing off from highs on risk aversion - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet noted that USD/JPY bounced from 118.75 to a 119.14 high in the initial response to news that Moody cut Japan's sovereign rating.
Key Quotes:
“Moody's cut Japan's sovereign rating by one notch to A1 from Aa3, citing "heightened uncertainty" over the nation's ability to cut its fiscal deficit following PM Abe's decision to delay a planned sales tax hike”.
“This leaves Moody’s rating for Japan one notch below S&P’s. But the initial yen selling was very short-lived, USD/JPY then sliding to 118.10 amid increased risk aversion, often the response to negative Japanese news”.
“The pair slipped as low as 117.87 before grinding back to 118.30. Westpac’s G10 FX model has entered a rare JPY long stance”.
Key Quotes:
“Moody's cut Japan's sovereign rating by one notch to A1 from Aa3, citing "heightened uncertainty" over the nation's ability to cut its fiscal deficit following PM Abe's decision to delay a planned sales tax hike”.
“This leaves Moody’s rating for Japan one notch below S&P’s. But the initial yen selling was very short-lived, USD/JPY then sliding to 118.10 amid increased risk aversion, often the response to negative Japanese news”.
“The pair slipped as low as 117.87 before grinding back to 118.30. Westpac’s G10 FX model has entered a rare JPY long stance”.