30 Jul 2013
USD/JPY explodes towards 98.40/50 stops
FXstreet.com (Barcelona) - The USD/JPY exchange rate has exploded higher towards 98.40 level, where tier 1 dealers are reporting stops, between 98.40-50, with 98.46 the line where the 100-DMA lies.
USD up on AUD weakness
According to Haruya Ida, Analyst at IFR Markets, AUD weakness is the major catalyst leading USD up across the board after the RBA Stevens' dovish speech. The Analyst expects "bidding interest now eyed on dips towards 98.00."
USD/JPY technical outlook
After a triple downside failure at 97.65, the pair has broken determinedly through 98.00/98.10, and all point for an hourly close above it, which should allow for higher quotes. At the moment of writing, even the resistance at 98.35, which converges with July 26 sequence of highs, has now been breached. The Nikkei 225 is up 1.5%, further supporting the USD/JPY.
USD/JPY vs Nikkei correlation
It is noteworthy to consider the latest fundamental view by Greg Gibbs, FX Strategist at RBS, on the Nikkei-USD/JPY correlation, who earlier said that in the scenario that the Nikkei increases too rapidly again, it will potentially be negative for the USD/JPY on the basis of a possible exit strategy by the BoJ on its easing policies.
USD up on AUD weakness
According to Haruya Ida, Analyst at IFR Markets, AUD weakness is the major catalyst leading USD up across the board after the RBA Stevens' dovish speech. The Analyst expects "bidding interest now eyed on dips towards 98.00."
USD/JPY technical outlook
After a triple downside failure at 97.65, the pair has broken determinedly through 98.00/98.10, and all point for an hourly close above it, which should allow for higher quotes. At the moment of writing, even the resistance at 98.35, which converges with July 26 sequence of highs, has now been breached. The Nikkei 225 is up 1.5%, further supporting the USD/JPY.
USD/JPY vs Nikkei correlation
It is noteworthy to consider the latest fundamental view by Greg Gibbs, FX Strategist at RBS, on the Nikkei-USD/JPY correlation, who earlier said that in the scenario that the Nikkei increases too rapidly again, it will potentially be negative for the USD/JPY on the basis of a possible exit strategy by the BoJ on its easing policies.