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28 May 2015
USD/JPY: 124.14 comes as target to exceed
FXStreet (Guatemala) - USD/JPY is currently trading at 123.74 with a high of 123.78 in Asia and low of 123.67.
USD/JPY was well bid overnight and jumped up to test space in the 124 handle before supply took the major back down to more familiar territory for the overnight sessions. 123.60 was a landing zone for the offers where a drift on demand in Tokyo attempts slightly higher.
Echoes of the IMF calling for the reinforcement of all three arrows of Abenomics can still be listened to in the market and risks of additional lose measures from the BoJ is weighing on Yen while the recent release of the Bank of Japan Minutes from April 30 explained the Central Banks intentions to continue easing until 2% inflation stable, a target that appears to be drifting off in to the distance. Data wise, we just had a series of, with retail sales of most interest rising but below expectations.
USD/JPY bull run fully in place, carving out a new range?
We are now placed above the previous 123.20/30 resistance zone, making a base at aforementioned downside base overnight and now we look to the June 2007 highs at 124.14. Failures here would offer impetus to hedge on corporate forward interest on Japanese receivables although a consolidation phase at 123.30 support would keep the new bullish range in place and may offer a cheaper entry on longs getting longer while dominate conditions in the US continue to point towards a strong dollar.
Analysts at TD Securities explained that "For the past several weeks, changes in yields spreads (as well as the magnitude) had indicated an upward bias for USD/JPY but the currency pair seemed immune to these moves. So in some ways we view the move higher in USD/JPY as a catch-up."
USD/JPY was well bid overnight and jumped up to test space in the 124 handle before supply took the major back down to more familiar territory for the overnight sessions. 123.60 was a landing zone for the offers where a drift on demand in Tokyo attempts slightly higher.
Echoes of the IMF calling for the reinforcement of all three arrows of Abenomics can still be listened to in the market and risks of additional lose measures from the BoJ is weighing on Yen while the recent release of the Bank of Japan Minutes from April 30 explained the Central Banks intentions to continue easing until 2% inflation stable, a target that appears to be drifting off in to the distance. Data wise, we just had a series of, with retail sales of most interest rising but below expectations.
USD/JPY bull run fully in place, carving out a new range?
We are now placed above the previous 123.20/30 resistance zone, making a base at aforementioned downside base overnight and now we look to the June 2007 highs at 124.14. Failures here would offer impetus to hedge on corporate forward interest on Japanese receivables although a consolidation phase at 123.30 support would keep the new bullish range in place and may offer a cheaper entry on longs getting longer while dominate conditions in the US continue to point towards a strong dollar.
Analysts at TD Securities explained that "For the past several weeks, changes in yields spreads (as well as the magnitude) had indicated an upward bias for USD/JPY but the currency pair seemed immune to these moves. So in some ways we view the move higher in USD/JPY as a catch-up."