13 Feb 2015
USD/JPY: Bulls attracted for cheap dollars here?
FXStreet (Guatemala) - USD/JPY is currently steady in the Tokyo open at 118.89 at time of writing with a high of 119.18 and low of 118.86 in Asia.
For the last open of the week, USD/JPY is supported in the 118.80's after a heavy sell off in London overnight as markets were informed in a media report that the BoJ are "reluctant to increase QE". The report sent the Yen lower vs the greenback by over 150 pips and back into less bullish territory.
Technically, we remain within familiar ranges but fundamentally, this "event" may well have caused less opportunity for the 120.50/70 targets for the bulls in the near term, despite how much "better" the US economy is supposedly doing. There is still plenty of political risk around to be long of the Yen as well.
However, with European banks entering negative rates, the Yen remains an attractive funder for the carry trades and should the US continue to outperform and Fed officials continue to announce plans for rate hikes this year in the US, the upside still has plenty to play for in USD/JPY and bulls could be attracted to add to longs for cheap dollars. Below here though, the four month uptrend at 117.75 guards 115.55/50115.50 which remains the key support of the range since mid Dec.
For the last open of the week, USD/JPY is supported in the 118.80's after a heavy sell off in London overnight as markets were informed in a media report that the BoJ are "reluctant to increase QE". The report sent the Yen lower vs the greenback by over 150 pips and back into less bullish territory.
Technically, we remain within familiar ranges but fundamentally, this "event" may well have caused less opportunity for the 120.50/70 targets for the bulls in the near term, despite how much "better" the US economy is supposedly doing. There is still plenty of political risk around to be long of the Yen as well.
However, with European banks entering negative rates, the Yen remains an attractive funder for the carry trades and should the US continue to outperform and Fed officials continue to announce plans for rate hikes this year in the US, the upside still has plenty to play for in USD/JPY and bulls could be attracted to add to longs for cheap dollars. Below here though, the four month uptrend at 117.75 guards 115.55/50115.50 which remains the key support of the range since mid Dec.