8 Aug 2013
USD/JPY breached 96.00
FXstreet.com (Edinburgh) -The weakness surrounding the greenback is intensifying on Thursday, dragging the USD/JPY to fresh 7-week lows in the area of 95.85/80.
USD/JPY punish by BoJ, risk
The broader context keeps favouring the risk-related assets, accelerating the selling pressure against the buck. The BoJ 2-day meeting ended up without any announcements by Kuroda and Co. prompting the yen to pick up pace early morning. Jane Foley, Senior Currency Strategist at Rabobank, commented, “while USD/JPY may have to wait a few more months before regaining its upside potential, this has the capacity to build in the early months of next year. We retain a 12 mth USD/JPY forecast of 105.00. Near-term, the break below the convergence and base line on the weekly Ichimoku chart is a negative signal; congestion in the 95.80 area should offer support”.
USD/JPY key levels
At the moment, the pair is down 0.48% at 95.89 and a break below 95/80 (high Jun.14) would open the door to 95.59 (76.4% of 93.75-101.54) and then 94.43 (low Jun.18). On the flip side, resistance levels are located at 96.95 (high Aug.8) followed by 97.50 (low Aug.6) and finally 97.80 (high Aug.7).
USD/JPY punish by BoJ, risk
The broader context keeps favouring the risk-related assets, accelerating the selling pressure against the buck. The BoJ 2-day meeting ended up without any announcements by Kuroda and Co. prompting the yen to pick up pace early morning. Jane Foley, Senior Currency Strategist at Rabobank, commented, “while USD/JPY may have to wait a few more months before regaining its upside potential, this has the capacity to build in the early months of next year. We retain a 12 mth USD/JPY forecast of 105.00. Near-term, the break below the convergence and base line on the weekly Ichimoku chart is a negative signal; congestion in the 95.80 area should offer support”.
USD/JPY key levels
At the moment, the pair is down 0.48% at 95.89 and a break below 95/80 (high Jun.14) would open the door to 95.59 (76.4% of 93.75-101.54) and then 94.43 (low Jun.18). On the flip side, resistance levels are located at 96.95 (high Aug.8) followed by 97.50 (low Aug.6) and finally 97.80 (high Aug.7).