27 Jan 2015
USD/JPY risks falling to 116.00 in the short-term – FXStreet
FXStreet (Barcelona) - According to FXStreet Editor and Analyst, Omkar Godbole, the USD/JPY pair might fall towards 116.00 levels in the short-term, aided by the escalating uncertainty in Greece and a probable dovish FOMC outcome.
Key Quotes
“The USD/JPY pair has been struggling to rise above 118.70 levels since past few sessions despite of a positive surprise from the European Central Bank (ECB) and a consequent rally in the global stock markets. The US 10-year Treasury yields too have a hard time extending gains above 1.83-1.85% levels.”
“The USD/JPY pair is likely to test 116.00 levels in the short-term.”
“Tensions in Greece may escalate. [..]safe haven assets are likely to rise as all eyes are on the party's unlikely coalition and what this could mean for its radical policies.”
“The Fed may turn slightly dovish citing a weak consumption despite drop in energy costs. Thus, the Treasury yields are likely to extend the slide, thereby supporting Yen.”
“On Technical grounds, a repeated failure to rise above 118.70 levels is likely to weigh on the pair. Furthermore, the bearish view remains intact so long as the pair trades below 50-DMA at 119.01 levels.”
“Thus, a sell-off anticipated at the current level of 118.00 provides an attractive risk reward ratio.”
Key Quotes
“The USD/JPY pair has been struggling to rise above 118.70 levels since past few sessions despite of a positive surprise from the European Central Bank (ECB) and a consequent rally in the global stock markets. The US 10-year Treasury yields too have a hard time extending gains above 1.83-1.85% levels.”
“The USD/JPY pair is likely to test 116.00 levels in the short-term.”
“Tensions in Greece may escalate. [..]safe haven assets are likely to rise as all eyes are on the party's unlikely coalition and what this could mean for its radical policies.”
“The Fed may turn slightly dovish citing a weak consumption despite drop in energy costs. Thus, the Treasury yields are likely to extend the slide, thereby supporting Yen.”
“On Technical grounds, a repeated failure to rise above 118.70 levels is likely to weigh on the pair. Furthermore, the bearish view remains intact so long as the pair trades below 50-DMA at 119.01 levels.”
“Thus, a sell-off anticipated at the current level of 118.00 provides an attractive risk reward ratio.”