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11 Jun 2013
USD/JPY threatening 96.00
FXstreet.com (Barcelona) - The yen appreciation is picking up pace, dragging USD/JPY to test the critical support at 96.00 on Tuesday.
BoJ disappointment sparks USD/JPY drop
It is worth noting that this morning the BoJ disappointed investors when failed to address the ongoing volatility of the JGBs, igniting a strong rally in JPY. “This puts the USDJPY at an interesting crossroads: US Treasury yields hit 16-month highs yesterday ahead of the June 19 FOMC meeting. Speculation has arisen that the Fed will begin to taper its QE3 program at that meeting, but it is unlikely that such a shift occurs just yet. Accordingly, selling pressure should ease in US government bonds, undercutting yields and removing a central tenet of the bullish US Dollar thesis. Accordingly, with a Fed taper unlikely, in context of the BoJ’s meeting last night, the USDJPY retains its near-term bearish bias and we favour selling rallies, ultimately looking for 92.00/50 over the coming weeks”, suggested Christopher Vecchio, Currency Analyst at DailyFX.
USD/JPY technicals
As of writing, the pair is down 2.71% at 96.10 with the next support at 95.40 (cloud base) and then 94.98 (low Jun.7). On the upside, a break above 99.05 (high Jun.11) would target 99.29 (high Jun.10)
BoJ disappointment sparks USD/JPY drop
It is worth noting that this morning the BoJ disappointed investors when failed to address the ongoing volatility of the JGBs, igniting a strong rally in JPY. “This puts the USDJPY at an interesting crossroads: US Treasury yields hit 16-month highs yesterday ahead of the June 19 FOMC meeting. Speculation has arisen that the Fed will begin to taper its QE3 program at that meeting, but it is unlikely that such a shift occurs just yet. Accordingly, selling pressure should ease in US government bonds, undercutting yields and removing a central tenet of the bullish US Dollar thesis. Accordingly, with a Fed taper unlikely, in context of the BoJ’s meeting last night, the USDJPY retains its near-term bearish bias and we favour selling rallies, ultimately looking for 92.00/50 over the coming weeks”, suggested Christopher Vecchio, Currency Analyst at DailyFX.
USD/JPY technicals
As of writing, the pair is down 2.71% at 96.10 with the next support at 95.40 (cloud base) and then 94.98 (low Jun.7). On the upside, a break above 99.05 (high Jun.11) would target 99.29 (high Jun.10)