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19 Mar 2015
USD/JPY: Back up to test 121 handle
FXStreet (Guatemala) - USD/JPY is currently trading at 120.92 with a high of 121.04 and a low of 119.66.
USD/JPY is back up towards the 121 handle after bouncing back from yesterday's lows post the FOMC meeting. The announcements of that meeting have left the markets in turmoil as the outlook from he Fed is digested. Rates in the US are going up, but it is still very much a matter of whether that can be as soon as June or not. Analysts are starting to take the bets of the table for even a rate rise to come at all this year with inflation and GDP forecasts lower than previous estimates from the Fed.
Eric Theoret, analyst at Scotiabank explained that the whipsaw movement driven by Wednesday’s Fed appears to be fading. "As we note that USDJPY was unable to close below its 21 day MA (120.19). An early test below this level in the Asian session also failed to hold, and we look to near term gains toward the 121.00 and Wednesday’s open at 121.37."
USD/JPY is back up towards the 121 handle after bouncing back from yesterday's lows post the FOMC meeting. The announcements of that meeting have left the markets in turmoil as the outlook from he Fed is digested. Rates in the US are going up, but it is still very much a matter of whether that can be as soon as June or not. Analysts are starting to take the bets of the table for even a rate rise to come at all this year with inflation and GDP forecasts lower than previous estimates from the Fed.
Eric Theoret, analyst at Scotiabank explained that the whipsaw movement driven by Wednesday’s Fed appears to be fading. "As we note that USDJPY was unable to close below its 21 day MA (120.19). An early test below this level in the Asian session also failed to hold, and we look to near term gains toward the 121.00 and Wednesday’s open at 121.37."