Forex Flash: USD/JPY potential for dips below 80.00 into year-end – Rabobank
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USD/JPY
FXstreet.com (Barcelona) - The cross seems to have found support in the area of 81.70 on Wednesday, as the uncertainties stemming from the Greek deal and increasing jitters on the US 'fiscal cliff' were weighting on the markets.
Jane Foley, Currency Strategist at Rabobank, comments "The yen has spent the bulk of November softening in anticipation that a LDP win at the December16 election will herald a period of increased pressure on the BoJ to ease policy further. However, in view of the yen's safe have credentials, an extension of yen weakness will be difficult if the market enters into period marked by fear of a potential US recession in the first half of next year".
"In view of the huge economic impact that the fiscal cliff could have, it seems likely that levels of caution in the market will rise into year end& A close below the daily convergence line at USDJPY81.87 today would be a bearish indicator for USDJPY. We see scope for potential dips below USDJPY80 into year-end", concludes the expert.
Jane Foley, Currency Strategist at Rabobank, comments "The yen has spent the bulk of November softening in anticipation that a LDP win at the December16 election will herald a period of increased pressure on the BoJ to ease policy further. However, in view of the yen's safe have credentials, an extension of yen weakness will be difficult if the market enters into period marked by fear of a potential US recession in the first half of next year".
"In view of the huge economic impact that the fiscal cliff could have, it seems likely that levels of caution in the market will rise into year end& A close below the daily convergence line at USDJPY81.87 today would be a bearish indicator for USDJPY. We see scope for potential dips below USDJPY80 into year-end", concludes the expert.
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