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16 Sep 2013
USD/JPY capped by 99.00 ahead of US data
FXstreet.com (Athens)- The USD/JPY is heading downwards since the opening of the European trading session, mainly due to the American dollar sharp sell off on Summers resignation.
Will the USD/JPY manage to overcome “Summers tantrum” after US data release?
Today the USD/JPY was mainly driven by US weakness and risk due to the fact that that Japanese markets are closed today for the Respect for the Aged Day holiday. Generally speaking the week ahead is a very quiet calendar week in aspects of Asian markets, as besides today, Chinese markets are closed on Thursday and Friday due to the mid-Autumn festival (the Hong Kong Stock Exchange is shut on Friday only). Regarding the pair, the USD/JPY is under heavy pressure as not only the “hawkish” Summers pulled out of the race, but the “great favorite”, Yellen, the Fed's current vice president is is interpreted in market terms as of “Fed seen as holding stimulus for longer.” If Fed holds on stimulus and easing, traders should not find out-of the blue what happens since the early opening in Asian’s trading session on Sunday, i.e. dollar weakening and 'risk-assets' gaining. Finally, the Syrian government will commit to a US-Russian agreement to eradicate its chemical weapons by the middle of 2014, lessening the threat to a potential US strike. Needless to say, Iran's Finance Minister Salehi said that “ready for full bid on nuclear talks. But, markets seem more focused on the Summers story than Iran comments.”
Technical Outlook and Strategic Bias on USD/JPY
Garreth Berry, Analyst on behalf of UBS, suggests that “Any downside should be limited as bullish conditions persist. Strong support is at 98.21 and 97.64. Resistance is at 100.61 ahead of 101.53.”
Will the USD/JPY manage to overcome “Summers tantrum” after US data release?
Today the USD/JPY was mainly driven by US weakness and risk due to the fact that that Japanese markets are closed today for the Respect for the Aged Day holiday. Generally speaking the week ahead is a very quiet calendar week in aspects of Asian markets, as besides today, Chinese markets are closed on Thursday and Friday due to the mid-Autumn festival (the Hong Kong Stock Exchange is shut on Friday only). Regarding the pair, the USD/JPY is under heavy pressure as not only the “hawkish” Summers pulled out of the race, but the “great favorite”, Yellen, the Fed's current vice president is is interpreted in market terms as of “Fed seen as holding stimulus for longer.” If Fed holds on stimulus and easing, traders should not find out-of the blue what happens since the early opening in Asian’s trading session on Sunday, i.e. dollar weakening and 'risk-assets' gaining. Finally, the Syrian government will commit to a US-Russian agreement to eradicate its chemical weapons by the middle of 2014, lessening the threat to a potential US strike. Needless to say, Iran's Finance Minister Salehi said that “ready for full bid on nuclear talks. But, markets seem more focused on the Summers story than Iran comments.”
Technical Outlook and Strategic Bias on USD/JPY
Garreth Berry, Analyst on behalf of UBS, suggests that “Any downside should be limited as bullish conditions persist. Strong support is at 98.21 and 97.64. Resistance is at 100.61 ahead of 101.53.”