26 Mar 2014
USD/JPY enjoying risk-on markets
FXStreet (Guatemala) - USD/JPY strength has been underpinned by a number of factors today that include positive US data, a looming tax hike and potential easing from Japan and general risk on market’s.
USD/JPY moved higher for a score of 102.48 on the board, tailing off slightly on supply, perhaps given that the recent US data wasn’t perceived as particularly meaningful. “I'm not sure this report will tell us anything meaningful about the state of the US economy”, said Kit Jukes, Global head of Currency Research at Societe Generale. Nevertheless, Durable Goods Orders (Feb) arrived at 2.2% beating consensus of 1.0% and previous -1.3%. More recently, US Markit Services PMI beat forecasts of 54.2 in March and arrived today at 55.5.
USD/JPY pro risk
“There is a clear pro-risk bias underlying the markets so far today. Global stocks are broadly higher and US futures are trading positively”, explained strategists at TD Securities, and Kit Juckes, Societe Generale noted that USD/JPY is a function of risk aversion, but of global rather than European risk sentiment. “With US equities finding a bit of support and the bottom of the US Treasury yield range holding, I feel comfortable that a base in USD/JPY is being built from which a move beyond 105 is likely in the coming weeks”, adding, “The final week of the fiscal year sees little fresh news and little reason for the yen to move far, but the pressure on the BOJ to ease further to counteract the effects of the consumption tax increase, already growing, will be irresistible if there is any sign that the tax is affecting spending”.
USD/JPY Levels
The 20 DMA is 102.27, the 50 DMA is 102.51 and the 200 DMA is 100.50. RSI (14) reads 61.49. Supports are ascending from 101.69, 101.89, 102.01, 102.20, 102.36 while resistances are 102.49, 102.69, 102.86 and 103.43.
USD/JPY moved higher for a score of 102.48 on the board, tailing off slightly on supply, perhaps given that the recent US data wasn’t perceived as particularly meaningful. “I'm not sure this report will tell us anything meaningful about the state of the US economy”, said Kit Jukes, Global head of Currency Research at Societe Generale. Nevertheless, Durable Goods Orders (Feb) arrived at 2.2% beating consensus of 1.0% and previous -1.3%. More recently, US Markit Services PMI beat forecasts of 54.2 in March and arrived today at 55.5.
USD/JPY pro risk
“There is a clear pro-risk bias underlying the markets so far today. Global stocks are broadly higher and US futures are trading positively”, explained strategists at TD Securities, and Kit Juckes, Societe Generale noted that USD/JPY is a function of risk aversion, but of global rather than European risk sentiment. “With US equities finding a bit of support and the bottom of the US Treasury yield range holding, I feel comfortable that a base in USD/JPY is being built from which a move beyond 105 is likely in the coming weeks”, adding, “The final week of the fiscal year sees little fresh news and little reason for the yen to move far, but the pressure on the BOJ to ease further to counteract the effects of the consumption tax increase, already growing, will be irresistible if there is any sign that the tax is affecting spending”.
USD/JPY Levels
The 20 DMA is 102.27, the 50 DMA is 102.51 and the 200 DMA is 100.50. RSI (14) reads 61.49. Supports are ascending from 101.69, 101.89, 102.01, 102.20, 102.36 while resistances are 102.49, 102.69, 102.86 and 103.43.