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19 Sep 2013
USD/JPY capped by 99.00
FXstreet.com (Edinburgh) - The USD/JPY managed to leave yesterday’s lows around 97.80 and recover the boundaries of the 99.00 handle on Thursday, despite the selling tone surrounding the greenback.
USD/JPY recovers from Fed’s no-taper
The pair is now trimming yesterday’s sharp sell off after the Fed decided not to scale back its QE programme, as recent results from the US economy proved to be yet insufficient to start tapering. “we expect USD/JPY to continue to range-trade in the coming months as it will probably require support from relative rates in order to see a renewed uptrend in USD/JPY… We target USD/JPY at 100 in 3M and 103 in 6M. Medium to long term we still expect relative monetary policy to support the case for a higher USD/JPY. We target USD/JPY at 110 in 12M”, suggested the research team at Danske bank.
USD/JPY levels to watch
The pair is now up 0.97% at 98.89 with the next hurdle at 99.34 (high Sep.18) followed by 99.38 (high Sep.17) and finally 99.54 (high Sep.16). On the downside, a violation of 97.88 (low Sep.19) would open the door to 97.76 (low Sep.18) and then 97.45 (low Aug.29).
USD/JPY recovers from Fed’s no-taper
The pair is now trimming yesterday’s sharp sell off after the Fed decided not to scale back its QE programme, as recent results from the US economy proved to be yet insufficient to start tapering. “we expect USD/JPY to continue to range-trade in the coming months as it will probably require support from relative rates in order to see a renewed uptrend in USD/JPY… We target USD/JPY at 100 in 3M and 103 in 6M. Medium to long term we still expect relative monetary policy to support the case for a higher USD/JPY. We target USD/JPY at 110 in 12M”, suggested the research team at Danske bank.
USD/JPY levels to watch
The pair is now up 0.97% at 98.89 with the next hurdle at 99.34 (high Sep.18) followed by 99.38 (high Sep.17) and finally 99.54 (high Sep.16). On the downside, a violation of 97.88 (low Sep.19) would open the door to 97.76 (low Sep.18) and then 97.45 (low Aug.29).