Forex: USD/JPY rallies on Japan's return to markets
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USD/JPY
FXstreet.com (Barcelona) - The return of Japan to financial markets made its impact as investors priced past headlines, including the US fiscal cliff resolution and now fears regarding the debt ceilling. The Nikkei Stock Averaged soared by 2.82%, reaching a 22-month high today.
That allowed the USDJPY to recover from its 86.77 low seen yesterday and rally to as high as 87.91 throughout Friday trading.
Ahead of the European opening, investors still seem interesting in longing the pair as it prints new daily highs. New Japan's Prime Minister Shinzo Abe plans to compile 2013/2014 budget by end of January. Already released, Retail Sales in Germany grew 1.2% in December (MoM), beating 0.8% consensus, and contracted less than expected on the yearly basis (-0.9% vs -1.2%).
"At this stage we remain unable to rule out further gains to 89.30 - its 30 year downtrend, where we would expect to see profit taking and a temporary halt in the bull move ahead of a move to 93.32 - the measurement higher of the triangle", wrote Commerzbank analyst Karen Jones.
That allowed the USDJPY to recover from its 86.77 low seen yesterday and rally to as high as 87.91 throughout Friday trading.
Ahead of the European opening, investors still seem interesting in longing the pair as it prints new daily highs. New Japan's Prime Minister Shinzo Abe plans to compile 2013/2014 budget by end of January. Already released, Retail Sales in Germany grew 1.2% in December (MoM), beating 0.8% consensus, and contracted less than expected on the yearly basis (-0.9% vs -1.2%).
"At this stage we remain unable to rule out further gains to 89.30 - its 30 year downtrend, where we would expect to see profit taking and a temporary halt in the bull move ahead of a move to 93.32 - the measurement higher of the triangle", wrote Commerzbank analyst Karen Jones.
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