14 Nov 2013
USD/JPY gearing up for 100.00?
FXstreet.com (Edinburgh) - The USD is now gathering traction, lifting the USD/JPY to levels just shy of the psychological triple-digit resistance.
USD/JPY focus on Yellen, US data
The greenback is recovering the ground lost after markets anticipated a dovish tone from the prepared testimony of Janet Yellen on Wednesday, ahead of today’s testimony before the Senate Banking Committee. The pair found extra oxygen after the Japanese economic activity expanded only 0.5% inter-quarter during Q3 vs. the 0.9% expansion in the previous quarter, weighing on the yen. Better risk-on tone also helps the pair on its way up. Lee Hardman, Currency Analyst at BTMU, commented, “On a more positive note, the domestic demand deflator returned to positive territory for the first time in twenty quarters. At the margin the report may encourage expectations that the BoJ will have to further expand the scale of its planned asset purchases next year in order to meet their inflation target which would weigh upon the yen”.
USD/JPY critical levels
At the moment the pair is up 0.48% at 99.88 and a surpass of 99.98 (high Sep.13) would target 100.62 (high Sep.11) en route to 101.05 (high Jul.22). On the downside, the initial support aligns at 99.10 (low Nov.13) followed by 98.92 (low Nov.11) and finally 98.71 (Tenkan Sen line).
USD/JPY focus on Yellen, US data
The greenback is recovering the ground lost after markets anticipated a dovish tone from the prepared testimony of Janet Yellen on Wednesday, ahead of today’s testimony before the Senate Banking Committee. The pair found extra oxygen after the Japanese economic activity expanded only 0.5% inter-quarter during Q3 vs. the 0.9% expansion in the previous quarter, weighing on the yen. Better risk-on tone also helps the pair on its way up. Lee Hardman, Currency Analyst at BTMU, commented, “On a more positive note, the domestic demand deflator returned to positive territory for the first time in twenty quarters. At the margin the report may encourage expectations that the BoJ will have to further expand the scale of its planned asset purchases next year in order to meet their inflation target which would weigh upon the yen”.
USD/JPY critical levels
At the moment the pair is up 0.48% at 99.88 and a surpass of 99.98 (high Sep.13) would target 100.62 (high Sep.11) en route to 101.05 (high Jul.22). On the downside, the initial support aligns at 99.10 (low Nov.13) followed by 98.92 (low Nov.11) and finally 98.71 (Tenkan Sen line).