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4 Jun 2013
Flash: USD/JPY upside mitigated – ANZ
FXstreet.com (Barcelona) - The USD/JPY flush through 100.00 triggered stops (99.45) and reduced the likelihood of an early return to the uptrend, but did not accelerate to the downside.
According to Tim Riddell, Head of Global Markets Research at ANZ, “The extent of rebounds will be key in determining how long the retracement phase may last. If mild, the much awaited consolidation should continue. If rebounds break above 100.60, definitely 101.30, beware an early return to JPY weakness.”
Frustration over minimal corrections, after effectively reaching 100 in April, led to rebuilding of JPY shorts too early. Now the prospect of retracements seems like failure rather than an opportunity to reposition for JPY weakness. The break back through 100.00 has not accelerated. Rather than targeting the retracement zone, 96.50-97.00 may be as good as it gets. “Rebounds above 101.30-60 will raise fears of an early JPY weakness.” Riddell warns.
According to Tim Riddell, Head of Global Markets Research at ANZ, “The extent of rebounds will be key in determining how long the retracement phase may last. If mild, the much awaited consolidation should continue. If rebounds break above 100.60, definitely 101.30, beware an early return to JPY weakness.”
Frustration over minimal corrections, after effectively reaching 100 in April, led to rebuilding of JPY shorts too early. Now the prospect of retracements seems like failure rather than an opportunity to reposition for JPY weakness. The break back through 100.00 has not accelerated. Rather than targeting the retracement zone, 96.50-97.00 may be as good as it gets. “Rebounds above 101.30-60 will raise fears of an early JPY weakness.” Riddell warns.