16 Jan 2015
Better bid USD/JPY stalling ahead of key 118 handle
FXStreet (Guatemala) - USD/JPY is currently trading at 117.55 with a high of 117.80 and a low of 115.85, up 1.08% on the day.
USD/JPY is trading in a phase of consolidating after a session of bids that took the pair up to test the 117.80 resistance while the greenback rallied across the board. The greenback is supported as a likely candidate for diversification of cash flows since the SNB removed its vow to support the EUR/CHF floor at 1.2000.
Investors will be looking to the dollar as a safe haven, while not necessarily searching for yield at this stage, but merely liquidity and given the robustness of the greenback and fundamental factors supporting the case for a strong dollar, broadly, investor preference towards US assets has been increasing over the last few quarters and this move by the SNB will heighten that appetite for high net worths. USD/JPY bulls, on the back of increasing demand for the greenback, have their sights set on the 120 handle again. 118 psychological resistance stands in the way currently, beyond that 118.50 and 119.20 are ahead of the 120 target.
USD/JPY is trading in a phase of consolidating after a session of bids that took the pair up to test the 117.80 resistance while the greenback rallied across the board. The greenback is supported as a likely candidate for diversification of cash flows since the SNB removed its vow to support the EUR/CHF floor at 1.2000.
Investors will be looking to the dollar as a safe haven, while not necessarily searching for yield at this stage, but merely liquidity and given the robustness of the greenback and fundamental factors supporting the case for a strong dollar, broadly, investor preference towards US assets has been increasing over the last few quarters and this move by the SNB will heighten that appetite for high net worths. USD/JPY bulls, on the back of increasing demand for the greenback, have their sights set on the 120 handle again. 118 psychological resistance stands in the way currently, beyond that 118.50 and 119.20 are ahead of the 120 target.