23 Jul 2013
Flash: USD/JPY needs sustained break below 99.50 to fall lower – BBH
FXstreet.com (New York) - It appears that it was not only FX investors who were buying the rumor and selling the fact after the Japanese elections, suggests the BBH Currency Strategy team.
Key quotes
“Abe looks to be pushing forward fast with plans to remilitarize Japan, exercising its right of collective self-defense. Moreover, Finance minister Aso is discussing plans to raise sales tax to 8%.”
“The USD/JPY has been trading on the back foot since the elections. On the downside, a convincing break of the 99.50 level is needed to open up the downside for the pair. After that, the 100-day MA, now at 98.29 will be the next important target to watch. However first, it bears notice if the 100 level will hold this week.”
Key quotes
“Abe looks to be pushing forward fast with plans to remilitarize Japan, exercising its right of collective self-defense. Moreover, Finance minister Aso is discussing plans to raise sales tax to 8%.”
“The USD/JPY has been trading on the back foot since the elections. On the downside, a convincing break of the 99.50 level is needed to open up the downside for the pair. After that, the 100-day MA, now at 98.29 will be the next important target to watch. However first, it bears notice if the 100 level will hold this week.”