10 Jul 2013
USD/JPY paring losses after FOMC insight
FXstreet.com (New York) - The USD/JPY foreign exchange rate climbed higher during US trading, following the FOMC minutes, which provided a trail of breadcrumbs for investors waiting for definitive timetable on QE easing.
Indeed it now appears that QE will be totally phased out by years-end, which obviously creates huge ramifications for the USD/JPY. In these moments, the USD/JPY is still deeply entrenched in negative territory at 100.37, despite the recent recovery (still down -0.80% Wednesday).
USD/JPY strategic bias
According to Stephen Gallo at BMO Capital Markets, “The JPY remained sensitive to both equity prices, risk-on/risk-off and yields through today’s Fed event risk, and as such we suggest looking for signs that both equities and yields are rising in tandem before thinking about getting short of the JPY in size.”
“The negative bias extended and the pair touched around levels 99.95. We think that the possibility of extending bearishness is valid today as Linear Regression Indicator 34 and 55 became more negative now and momentum indicators are trading in a negative bias.” Warns the Technical Analyst Team at ICN.com.
Indeed it now appears that QE will be totally phased out by years-end, which obviously creates huge ramifications for the USD/JPY. In these moments, the USD/JPY is still deeply entrenched in negative territory at 100.37, despite the recent recovery (still down -0.80% Wednesday).
USD/JPY strategic bias
According to Stephen Gallo at BMO Capital Markets, “The JPY remained sensitive to both equity prices, risk-on/risk-off and yields through today’s Fed event risk, and as such we suggest looking for signs that both equities and yields are rising in tandem before thinking about getting short of the JPY in size.”
“The negative bias extended and the pair touched around levels 99.95. We think that the possibility of extending bearishness is valid today as Linear Regression Indicator 34 and 55 became more negative now and momentum indicators are trading in a negative bias.” Warns the Technical Analyst Team at ICN.com.