Filed Under:
Forex pairs in this Article » USD/JPY (Edinburgh) -The USD/JPY continues to consolidate the recent bounce off the 97.00 handle beyond 98.00 the figure, looking to define the trend ahead of key releases in the US economy.

In the opinion of the research team at Westpac Global Strategy Group, “Signs of renewed outflows to foreign bonds are encouraging for yen crosses in the week after the BOJ reaffirmed its full pace QE in its semi-annual report. Our USD bias is becoming more bullish which helps inspire the view that USD/JPY is primed for a run towards 100. Sustained trade beyond that level however is likely to require a stronger run of US economic data than we expect”.

In addition, analysts at TD Securities commented, “Essentially, USD/JPY remains in a range and it is a range that is steadily tightening. While downside supports hold, the broader pattern of trade looks more like a consolidation of the late 2012/2013 rally. Now, a clear push through the 99.20 triangle top would imply the risk of a renewed leg higher. Oscillator studies are mixed over various timeframes, suggesting more range trading, however, so we may need to see gains extending well significantly (above 100.50) to signal a rally”.
comments powered by Disqus