2 Dec 2014
USD/JPY: “Tis the season to be jolly…”
FXStreet (Guatemala) - USD/JPY is trading at 118.26, down -0.05% on the day, having posted a daily high at 118.48 and low at 118.13.
USD/JPY is steady in the Tokyo open but risks have mounted to the downside on risk aversion and unwinding in the greenback on the count of the recent Moody downgrade of Japan and commodities recovering.
Tis the season to be “jolly”- well wearing your tin hat as things might start to get volatile. Seasonally, the greenback tends to underperform at this time of year, or in the last couple of weeks of December anyway on corporate repatriation flows but we need to cross the FOMC and Nonfarm payrolls as well as the snap elections first.
For the short - medium term at least, the Yen, outside of risk aversion, would normally be on the back foot under these circumstances, and we witnessed the rally up to 119 already on Moody's downgrade initially, but we are heading towards the snap elections as an additional risk factor so these are not exactly everyday conditions leading into year end. 117.80 marks key support ahead of further tests of 117.30 area and 115.00 psychlogical level.
USD/JPY is steady in the Tokyo open but risks have mounted to the downside on risk aversion and unwinding in the greenback on the count of the recent Moody downgrade of Japan and commodities recovering.
Tis the season to be “jolly”- well wearing your tin hat as things might start to get volatile. Seasonally, the greenback tends to underperform at this time of year, or in the last couple of weeks of December anyway on corporate repatriation flows but we need to cross the FOMC and Nonfarm payrolls as well as the snap elections first.
For the short - medium term at least, the Yen, outside of risk aversion, would normally be on the back foot under these circumstances, and we witnessed the rally up to 119 already on Moody's downgrade initially, but we are heading towards the snap elections as an additional risk factor so these are not exactly everyday conditions leading into year end. 117.80 marks key support ahead of further tests of 117.30 area and 115.00 psychlogical level.