15 Nov 2013
USD/JPY in highs near 100.40
FXstreet.com (Edinburgh) - The USD keeps appreciating against the Japanese yen on Friday, lifting the USD/JPY to session highs around 100.40.
USD/JPY September tops at 100.62 exposed
The context of increasing risk appetite coupled with recent disappointing GDP results in Japan during the third quarter keep favouring outflows from the yen and adding to the pair’s upside. In the same direction, speculations regarding further easing from the BoJ would also be propping up the current bull run. Senior Analyst Morten Helt at Danske Bank assessed, “we do not expect the Bank of Japan to change its policy at this stage and consequently, we still expect USD/JPY to remain range bound in the coming months, before eventually rising on a six- to 12-month horizon driven by divergent monetary policy as the Fed starts to taper and the Bank of Japan possibly scales up on its bond purchases at some point around summer next year. Hence, we still target USD/JPY at 110 in 12-month time”.
USD/JPY critical levels
As of writing the pair is up 0.29% at 100.30 with the immediate up barrier at 10062 (high Sep.11) ahead of 101.05 (high Jul.22) and then 101.22 (high Jul.10). On the downside, a breach of 99.80 (high Nov.12) would aim for 99.13 (low Nov.14) and finally 99.10 (low Nov.12).
USD/JPY September tops at 100.62 exposed
The context of increasing risk appetite coupled with recent disappointing GDP results in Japan during the third quarter keep favouring outflows from the yen and adding to the pair’s upside. In the same direction, speculations regarding further easing from the BoJ would also be propping up the current bull run. Senior Analyst Morten Helt at Danske Bank assessed, “we do not expect the Bank of Japan to change its policy at this stage and consequently, we still expect USD/JPY to remain range bound in the coming months, before eventually rising on a six- to 12-month horizon driven by divergent monetary policy as the Fed starts to taper and the Bank of Japan possibly scales up on its bond purchases at some point around summer next year. Hence, we still target USD/JPY at 110 in 12-month time”.
USD/JPY critical levels
As of writing the pair is up 0.29% at 100.30 with the immediate up barrier at 10062 (high Sep.11) ahead of 101.05 (high Jul.22) and then 101.22 (high Jul.10). On the downside, a breach of 99.80 (high Nov.12) would aim for 99.13 (low Nov.14) and finally 99.10 (low Nov.12).