10 Jul 2013
Flash: USD/JPY set to break 100.00 – DailyFX
FXstreet.com (Córdoba) - Later today, the Fed's June 18 to 19 meeting minutes will be released followed by a speech from Fed Chairman Bernanke.
"Considering that Fed officials have been on the defensive since the June FOMC meeting it wouldn't be surprising to hear Chairman Bernanke utilize dovish rhetoric, if only to serve as a counterweight to the recent uptick in borrowing costs", says Christopher Vecchio analyst at DailyFX.
USD/JPY eyes Bernanke and BoJ
"With the Fed set to balance its tone, the BoJ on Thursday will provide the ammunition to see the USDJPY selloff into the end of the week as long as a hold prevails", the analyst comments. "This may be the last BoJ meeting marked by inaction, as the Japanese diet elections over the coming days will cement power with the pro-easing/Abenomics camp, which should pave the way for more accommodative policies in the fall".
"These factors collectively point to USDJPY breaking ¥100 this week; but given the short-term nature of the influences (deviations from the bigger picture), USDJPY weakness looks to be bought", Vecchio adds.
"Considering that Fed officials have been on the defensive since the June FOMC meeting it wouldn't be surprising to hear Chairman Bernanke utilize dovish rhetoric, if only to serve as a counterweight to the recent uptick in borrowing costs", says Christopher Vecchio analyst at DailyFX.
USD/JPY eyes Bernanke and BoJ
"With the Fed set to balance its tone, the BoJ on Thursday will provide the ammunition to see the USDJPY selloff into the end of the week as long as a hold prevails", the analyst comments. "This may be the last BoJ meeting marked by inaction, as the Japanese diet elections over the coming days will cement power with the pro-easing/Abenomics camp, which should pave the way for more accommodative policies in the fall".
"These factors collectively point to USDJPY breaking ¥100 this week; but given the short-term nature of the influences (deviations from the bigger picture), USDJPY weakness looks to be bought", Vecchio adds.