24 Jan 2014
USD/JPY breaches 103.00
FXstreet.com (Edinburgh) - A continuation of the recent risk-off tone is intensifying the buying interest for the Japanese yen, dragging the USD/JPY below the 103.00 handle.
USD/JPY weaker on EM sell-off
The recent events in the EM universe, with significant devaluations in Russia, Turkey and Argentina plus increasing signs of unrest in Kiev and Thailand and an apparent slowdown in the Chinese economy would be all plotting against the risk sentiment and benefitting usual safe havens as the yen, greenback and franc. Strategist Emmanuel Ng at OCBC Bank argued, “Immediate support is seen at the 55-day MA (103.05) and if this is violated on a sustained basis, expect further downside potential towards 102.00. In the interim, global risk appetite levels and the concomitant behavior in the JPY-crosses may remain good barometers for the pair”.
USD/JPY levels to watch
The pair is now retreating 0.16% at 103.00 and the first support aligns at 103.00 (low Jan.14) ahead of 102.85 (2014 low Jan.13) and then 102.56 (low Dec.18). On the upside, a break above 104.15 (MA200h) would expose 104.55 (MA21d) and finally 104.84 (high Jan.23).
USD/JPY weaker on EM sell-off
The recent events in the EM universe, with significant devaluations in Russia, Turkey and Argentina plus increasing signs of unrest in Kiev and Thailand and an apparent slowdown in the Chinese economy would be all plotting against the risk sentiment and benefitting usual safe havens as the yen, greenback and franc. Strategist Emmanuel Ng at OCBC Bank argued, “Immediate support is seen at the 55-day MA (103.05) and if this is violated on a sustained basis, expect further downside potential towards 102.00. In the interim, global risk appetite levels and the concomitant behavior in the JPY-crosses may remain good barometers for the pair”.
USD/JPY levels to watch
The pair is now retreating 0.16% at 103.00 and the first support aligns at 103.00 (low Jan.14) ahead of 102.85 (2014 low Jan.13) and then 102.56 (low Dec.18). On the upside, a break above 104.15 (MA200h) would expose 104.55 (MA21d) and finally 104.84 (high Jan.23).