27 May 2015
USD/JPY's 123 handle holds as Yen hit on all sides
FXStreet (Guatemala) - USD/JPY is currently trading at 123.06 with a high of 123.10 and low of 122.92.
USD/JPY is open in Tokyo with bulls holding on to the 123 handle with the overnight US data analysed and keeping a bid tone around the greenback in Asia. The major is under the control of the bulls in an environment of both a strong dollar and fundamentals that are also weighing on the Yen.
There are a number of factors weakening the Yen, but the currency has been unable to recover to any convincing extent following the announcement late last week from the IMF calling for the reinforcement of all three arrows of Abenomics.
There had also been evidence in the recent data from the CFTC Commitment of Traders Report for the week ending Tuesday May 19, that institutional investors had started to commit once again into Yen short bets, as written yesterday by Ivan Delgado, Head of Asian Editors.
Meanwhile, USD/JPY is on a breakout of the daily bullish triangle and on to the 123 handle. Today, we have seen the release of the Bank of Japan Minutes from April 30 where the minutes echoed the usual with Central Banks intentions to continue easing until 2% inflation stable.
USD/JPY breaks ascending triangle's top
The bullish triangle was confirmed with the break out up to test the 123.20/30 resistance zone and June 2007 highs at 124.14 with 125 coming as the next psychological levels and targets for the bulls. A pull back and buying on dips would leave the pair in to a consolidation phase should the 121/122.00 range hold in as support.
USD/JPY is open in Tokyo with bulls holding on to the 123 handle with the overnight US data analysed and keeping a bid tone around the greenback in Asia. The major is under the control of the bulls in an environment of both a strong dollar and fundamentals that are also weighing on the Yen.
There are a number of factors weakening the Yen, but the currency has been unable to recover to any convincing extent following the announcement late last week from the IMF calling for the reinforcement of all three arrows of Abenomics.
There had also been evidence in the recent data from the CFTC Commitment of Traders Report for the week ending Tuesday May 19, that institutional investors had started to commit once again into Yen short bets, as written yesterday by Ivan Delgado, Head of Asian Editors.
Meanwhile, USD/JPY is on a breakout of the daily bullish triangle and on to the 123 handle. Today, we have seen the release of the Bank of Japan Minutes from April 30 where the minutes echoed the usual with Central Banks intentions to continue easing until 2% inflation stable.
USD/JPY breaks ascending triangle's top
The bullish triangle was confirmed with the break out up to test the 123.20/30 resistance zone and June 2007 highs at 124.14 with 125 coming as the next psychological levels and targets for the bulls. A pull back and buying on dips would leave the pair in to a consolidation phase should the 121/122.00 range hold in as support.