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17 May 2013
USD/JPY eases off session highs to 102.45/49
FXstreet.com (Barcelona) - The USD/JPY pared most of yesterday’s losses overnight, recently capped at the 102.59 figure (session high), before easing back towards 102.45/49 in these moments during European trading.
At this juncture the cross is operating +0.20% above its opening Friday and Mataf.net analysts point to resistive means for the USD/JPY at 102.66, onto 103.10, and ultimately 103.51. Conversely, a break below the 101.81 handle will initiate support at 101.40 and 100.96.
“JGB yields are now significantly higher than they were before Kuroda's announcement on April 4th. That's a mixed blessing for life insurers who prize the absence of volatility as much as attractive returns. However if the JGB market eventually finds a new stable equilibrium at these higher yields, the case for investing overseas in search of yield enhancement would be somewhat undermined. In this case, a further extension of the USDJPY rally may be delayed until the Fed signals concrete plans to taper QE3 bond purchases.” warns Research Analyst Gareth Berry at UBS.
At this juncture the cross is operating +0.20% above its opening Friday and Mataf.net analysts point to resistive means for the USD/JPY at 102.66, onto 103.10, and ultimately 103.51. Conversely, a break below the 101.81 handle will initiate support at 101.40 and 100.96.
“JGB yields are now significantly higher than they were before Kuroda's announcement on April 4th. That's a mixed blessing for life insurers who prize the absence of volatility as much as attractive returns. However if the JGB market eventually finds a new stable equilibrium at these higher yields, the case for investing overseas in search of yield enhancement would be somewhat undermined. In this case, a further extension of the USDJPY rally may be delayed until the Fed signals concrete plans to taper QE3 bond purchases.” warns Research Analyst Gareth Berry at UBS.