20 Aug 2013
USD/JPY challenges 97.00
FXstreet.com (Ediinburgh) -The weakness surrounding the greenback is dragging the USD/JPY to fresh session lows around 97.15/00 on Tuesday.
USD/JPY in multi-day lows
The pair is suffering today’s risk-off mode, testing levels last seen early last week. In the data front, Japanese All Industry Activity index contracted 0.6% on a monthly basis in June, missing the median at 0.5% and lower than May’s 1.2% advance (revised). According to Mansoor Mohi-uddin, Director of FX Strategy at UBS, “The prospective combination of tighter fiscal policy and looser monetary policy keeps us bearish on the yen. We think that once the uncertainty over the sale tax increase is ended, domestic financial markets are likely to rally. That will spur further risk-seeking behaviour by Japanese investors… But in Q4'13 we see the currency pair trading back into a higher 100-110 range once the authorities have made a decision on the sales tax rise”.
USD/JPY relevant levels
As of writing the pair is losing 0.47% at 97.08 with the next support at 96.97 (low Aug.20) ahead of 96.90 (61.8% of 95.81-98.66) and finally 96.88 (low Aug.13). On the upside, a breakout of 97.87 (high Aug.20) would bring 98.43 (Kijun Sen line) and then 98.66 (high Aug.15).
USD/JPY in multi-day lows
The pair is suffering today’s risk-off mode, testing levels last seen early last week. In the data front, Japanese All Industry Activity index contracted 0.6% on a monthly basis in June, missing the median at 0.5% and lower than May’s 1.2% advance (revised). According to Mansoor Mohi-uddin, Director of FX Strategy at UBS, “The prospective combination of tighter fiscal policy and looser monetary policy keeps us bearish on the yen. We think that once the uncertainty over the sale tax increase is ended, domestic financial markets are likely to rally. That will spur further risk-seeking behaviour by Japanese investors… But in Q4'13 we see the currency pair trading back into a higher 100-110 range once the authorities have made a decision on the sales tax rise”.
USD/JPY relevant levels
As of writing the pair is losing 0.47% at 97.08 with the next support at 96.97 (low Aug.20) ahead of 96.90 (61.8% of 95.81-98.66) and finally 96.88 (low Aug.13). On the upside, a breakout of 97.87 (high Aug.20) would bring 98.43 (Kijun Sen line) and then 98.66 (high Aug.15).