25 Jun 2013
USD/JPY capped on lower US yields
FXstreet.com (London) - USD/JPY ducked away from 98.00 handle overnight, making a low of 97.28, and is slightly bid on the open.
Having gapped to the upside on Monday, reaching highs of 98.64, the pair was rejected there heavily and moved lower throughout European trading and then NY, drifting sideways and slightly higher to reach the handle again in Asian markets on higher performances in the Nikkie 225. Spiros Papadopoulos Senior Economist at National Australia Bank said that Dallas Fed President Fisher suggested that markets may have overreacted to last week’s more hawkish Fed statement, and cautioned the “feral hogs” of financial markets against overreaction. He explained this follows a similar warning from Fed “watcher” Hilsenrath over the weekend. Markets took heed. From 22-month highs around 2.66%, 10-year US Treasury yields have slipped back to around 2.54%, eroding ‘fundamental’ support for the USD. This is weighing on USD/JPY. Data for the pair today will come in the form of a raft of US numbers in the afternoon, Durable Goods, Housing Price Index, Consumer Confidence and New Home Sales. And Treasury sec Lew is speaking late in the evening.
USD/JPY
Karen Jones at Commerzbank said that USD/JPY appears to be stalling just ahead of the 55 day ma at 99.12. They 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 she said to the 50% retracement at 90.43. “We have conflicting evidence on the intraday charts and our conviction is low at this point”.
Having gapped to the upside on Monday, reaching highs of 98.64, the pair was rejected there heavily and moved lower throughout European trading and then NY, drifting sideways and slightly higher to reach the handle again in Asian markets on higher performances in the Nikkie 225. Spiros Papadopoulos Senior Economist at National Australia Bank said that Dallas Fed President Fisher suggested that markets may have overreacted to last week’s more hawkish Fed statement, and cautioned the “feral hogs” of financial markets against overreaction. He explained this follows a similar warning from Fed “watcher” Hilsenrath over the weekend. Markets took heed. From 22-month highs around 2.66%, 10-year US Treasury yields have slipped back to around 2.54%, eroding ‘fundamental’ support for the USD. This is weighing on USD/JPY. Data for the pair today will come in the form of a raft of US numbers in the afternoon, Durable Goods, Housing Price Index, Consumer Confidence and New Home Sales. And Treasury sec Lew is speaking late in the evening.
USD/JPY
Karen Jones at Commerzbank said that USD/JPY appears to be stalling just ahead of the 55 day ma at 99.12. They 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 she said to the 50% retracement at 90.43. “We have conflicting evidence on the intraday charts and our conviction is low at this point”.