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Forex pairs in this Article » USD/JPY
FXStreet (Guatemala) - Ivan Delgado, Head of Asian Editors at FXStreet noted the near term dynamics in the Yen and suggested that markets are looking to sell the USD/JPY on strength.

Key Quotes:

“While the near term dynamics in USD/JPY continue to favour selling on strength, a possible retest of 102.00 resistance looks increasingly likely. The anticipated upside extension in USD/JPY could also be supported by a buoyant Nikkei 225, with rejection off 14,000 round number coupled with better sentiment towards risk on Tuesday, suggesting rises ahead”.

“A note of caution for those looking to sell USD/JPY is the fact that the Nikkei, if risk sustained, could be allowed over 400 points up from current levels until faced with first hurdle at 14,600 ahead of 14,800, which may put upward pressure against 102.00 in USD/JPY”.

“If by the time USD/JPY gets into close contact with 102.00 the Nikkei 225 still looks strong and has further room to run, be cautious as Nikkei 225 tends to lead the USD/JPY in Asia, and may result in stops above 102.00 being tripped. On the flip side, if by the time USD/JPY enters the 102.00 vicinity, the Nikkei 225 hovers around 14,600 up to 14,800, greater conviction to sell USD/JPY by Asian accounts may be seen”.
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