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Forex pairs in this Article » USD/JPY (Edinburgh) - The USD/JPY continues to retrace yesterday’s sharp ascent to the area of 103.40 amidst a context slightly biased towards the risk-off trade.

USD/JPY back below 103.00

The pair lacked the vigour in its run up to 2013 highs beyond 103.70 on Tuesday, sparking a correction lower while market participants keep digesting the recently announced stimulus package and the pessimistic comments by T.Sato, emphasizing his doubts regarding the capacity of the Japanese economy to achieve the 2% inflation target. “over the short-term, it will be the events in the US and the euro-zone that will determine the near-term direction of the yen. The best (and most likely) outcome for yen sellers is that the ECB remains cautious on further easing but equally leaves open the prospect in 2014 and an around consensus 180-200k print in NFP on Friday”, assessed Derek Halpenny, European Head of Global Markets Research.

USD/JPY levels to watch

At the moment the pair is advancing 0.05% at 102.48 and a surpass of 103.38 (high Dec.3) would target 103.57 (high May 23) en route to 103.74 (2013 high May 22). On the downside, the immediate support is at 102.24 (low Dec.4) ahead of 102.17 (Tenkan Sen line) and then102.04 (MA10d).
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