28 Oct 2013
USD/JPY slightly bid amidst saber rattling between China and Japan
FXstreet.com (Athens) – The USD/JPY has been trading steadily upwards since the kick off of the Asian trading session – in a consolidative mode around 97.50 the past couple of hours – mostly due to market expectations the Fed will maintain its monetary policy unchanged this week.
USD/JPY upwards as Nikkei advances by 2.19% and on bets the Fed’s taper will be delayed to 2014
The USD/JPY opened in the early Asian trading session with a gap, which might well be attributed to the saber rattling between China and Japan. What’s more, the USD/JPY gained solid ground later, as Nikkei closed the first trading day of the week up 2.19% and as it is widely known there is an immense inverse correlation between Nikkei and the Japanese currency. In addition to the above, the uptrend of the cross might well be attributed to the sharp gains in all other JPY crosses (especially the AUD/JPY) due to the risk - on mood, as well as to the thin liquidity due to Wellington holidays.
Technical Aspects on the USD/JPY
Emmanuel Ng of OCBC Bank mentions that the FOMC this week may determine near term prospects for the pair with the 200-day MA (97.39) still under threat. On the upside, the resistance at 98.00 may continue to be unchallenged if the USD continues to remain vulnerable ahead of the Fed.”
USD/JPY upwards as Nikkei advances by 2.19% and on bets the Fed’s taper will be delayed to 2014
The USD/JPY opened in the early Asian trading session with a gap, which might well be attributed to the saber rattling between China and Japan. What’s more, the USD/JPY gained solid ground later, as Nikkei closed the first trading day of the week up 2.19% and as it is widely known there is an immense inverse correlation between Nikkei and the Japanese currency. In addition to the above, the uptrend of the cross might well be attributed to the sharp gains in all other JPY crosses (especially the AUD/JPY) due to the risk - on mood, as well as to the thin liquidity due to Wellington holidays.
Technical Aspects on the USD/JPY
Emmanuel Ng of OCBC Bank mentions that the FOMC this week may determine near term prospects for the pair with the 200-day MA (97.39) still under threat. On the upside, the resistance at 98.00 may continue to be unchallenged if the USD continues to remain vulnerable ahead of the Fed.”