Forex: USD/JPY rallies above 84.62, eyes on 85.00
Forex pairs in this Article »
USD/JPY
FXstreet.com (Barcelona) - The USDJPY is now being the most interesting pair to lay eyes on today as traders are increasingly pricing in Japan Prime Minister-elect Abe and LDP's no.2 Ishiba's comments over the weekend.
Abe clearly stated there was a big difference for the economy depending on the exchange rate and Ishiba was more concrete, calling for USDJPY exchange rate of 85.00/90.00. Also, Shinzo Abe said that the government will revise BoJ Law if the central bank doesn't change its inflation target to 2% at the January 21-22 meeting.
The USDJPY rally surpassed last week's high of 84.62 and is extending 2012 gains, closing in on the 85.00 mark and 85.48, 2011 high. The NY opening upside has taken the pair to 84.73 high, so far.
"We view the broader basing action in USDJPY over the past year or so as a bullish, inverse H&S formation", wrote TD Securities analysts, allowing corrective losses to be limited to the 82.95 area in the near-term, while steep, short-term trend support stands at 83.54 today.
Abe clearly stated there was a big difference for the economy depending on the exchange rate and Ishiba was more concrete, calling for USDJPY exchange rate of 85.00/90.00. Also, Shinzo Abe said that the government will revise BoJ Law if the central bank doesn't change its inflation target to 2% at the January 21-22 meeting.
The USDJPY rally surpassed last week's high of 84.62 and is extending 2012 gains, closing in on the 85.00 mark and 85.48, 2011 high. The NY opening upside has taken the pair to 84.73 high, so far.
"We view the broader basing action in USDJPY over the past year or so as a bullish, inverse H&S formation", wrote TD Securities analysts, allowing corrective losses to be limited to the 82.95 area in the near-term, while steep, short-term trend support stands at 83.54 today.
Free Annual Reports
