23 Sep 2013
USD/JPY fighting for bids below 99.00
FXstreet.com (London) - USD/JPY dropped sharply from the highs of over 99.60 to print a low of 99.35 where it has managed to attract bids back towards 99.00.
The Yen still remains out of favour as speculators continue to consider the currency as performing the function of a funding currency. Meanwhile, research teams at BBH suggest that the Abe government is preparing a fiscal package to blunt the impact of the retail sales tax hike that will most likely be implemented on April 1. “Reports suggest the package can be as much as JPY5-10 trln and include the end of the corporate surcharge for the Tohoku rebuilding and new auto incentives. A formal decision is now seen likely in early October”.
USD/JPY Levels
The 20 DMA is 99.10, the 50 DMA is 98.65 and the 200 DMA is 96.04. RSI (14) reads 28.70. Supports are ascending from 98.21, 98.45, and 98.75. Spot is currently 98.86. Resistances are 99.00, 99.11, 99.47, 99.67, 99.99 and 101.05.
The Yen still remains out of favour as speculators continue to consider the currency as performing the function of a funding currency. Meanwhile, research teams at BBH suggest that the Abe government is preparing a fiscal package to blunt the impact of the retail sales tax hike that will most likely be implemented on April 1. “Reports suggest the package can be as much as JPY5-10 trln and include the end of the corporate surcharge for the Tohoku rebuilding and new auto incentives. A formal decision is now seen likely in early October”.
USD/JPY Levels
The 20 DMA is 99.10, the 50 DMA is 98.65 and the 200 DMA is 96.04. RSI (14) reads 28.70. Supports are ascending from 98.21, 98.45, and 98.75. Spot is currently 98.86. Resistances are 99.00, 99.11, 99.47, 99.67, 99.99 and 101.05.