13 Dec 2013
USD/JPY pullback contained
FXstreet.com (Córdoba) - The USD/JPY broke above 2013 highs and stretched to its strongest level in more than 5 years amid broad yen weakness.
The yen also fell to a 5-year low against the euro and a 3-decade low versus the franc Friday. The USD/JPY reached a high of 103.92, last seen Oct 2008, before facing some profit taking and pulling back. However, the setback was contained by the 20-hour SMA and the USD/JPY is currently trading at the 103.50 area, still 0.1% above its opening price.
Divergent policies underpin the USD/JPY
Prospects of divergent monetary policies have been propelling the USD/JPY. While the Fed is expected to begin tapering its bond-buying program next year, the BoJ is moving to monetary easing.
USD/JPY technical levels
As for technical levels, the USDD/JPY could find next resistances at 103.92 (5-year high), 104.00 (psychological level), 104.20 (May 2005 low) and not much until 105.00 (psychological level). On the other hand, supports are seen at 103.34 (daily low), 103.00 (psychological level) and 102.78 (10-day SMA).
The yen also fell to a 5-year low against the euro and a 3-decade low versus the franc Friday. The USD/JPY reached a high of 103.92, last seen Oct 2008, before facing some profit taking and pulling back. However, the setback was contained by the 20-hour SMA and the USD/JPY is currently trading at the 103.50 area, still 0.1% above its opening price.
Divergent policies underpin the USD/JPY
Prospects of divergent monetary policies have been propelling the USD/JPY. While the Fed is expected to begin tapering its bond-buying program next year, the BoJ is moving to monetary easing.
USD/JPY technical levels
As for technical levels, the USDD/JPY could find next resistances at 103.92 (5-year high), 104.00 (psychological level), 104.20 (May 2005 low) and not much until 105.00 (psychological level). On the other hand, supports are seen at 103.34 (daily low), 103.00 (psychological level) and 102.78 (10-day SMA).