15 Apr 2014
USD/JPY extends the recovery to 101.80
FXStreet (Edinburgh) - The USD/JPY is now prolonging the bounce off session lows in the mid-101.00s on Tuesday, as the US session is drawing to a close.
USD/JPY focus on Kuroda, data
Moving forward to tomorrow’s docket in the Japanese economy, Industrial Production figures during March are due (-2.3% exp.) ahead of the speech by BoJ’s Kuroda. The risk trends would be under scrutiny tomorrow as Chinese data from the Q1 GDP would also be in the limelight in the region. However, geopolitical tensions stemming from Ukraine could ignite safe haven inflows, benefiting the Japanese yen. “We maintain a long bias for USD/JPY for another week, but are resigned to being patient here. Clearly USD/JPY is driven by risk sentiment and US yields. We see the current dip in USD/JPY to a 101 handle as a buy opportunity. We still look for 104 over one month but after last week’s contented tone from BoJ governor Kuroda, this view is increasingly reliant on US yields kicking higher, probably not imminent despite the busy US calendar”, noted analysts at Westpac Global Strategy Group.
USD/JPY levels to watch
At the moment the pair is losing 0.01% at 101.83 with the next support at 101.32 (low Apr.11) ahead of 101.30 (low Mar.19) and finally 100.80 (200-d MA. On the upside, breakout of 102.16 (high Apr.9) would expose102.37 (daily cloud base) and then 102.67 (Kijun Sen).
USD/JPY focus on Kuroda, data
Moving forward to tomorrow’s docket in the Japanese economy, Industrial Production figures during March are due (-2.3% exp.) ahead of the speech by BoJ’s Kuroda. The risk trends would be under scrutiny tomorrow as Chinese data from the Q1 GDP would also be in the limelight in the region. However, geopolitical tensions stemming from Ukraine could ignite safe haven inflows, benefiting the Japanese yen. “We maintain a long bias for USD/JPY for another week, but are resigned to being patient here. Clearly USD/JPY is driven by risk sentiment and US yields. We see the current dip in USD/JPY to a 101 handle as a buy opportunity. We still look for 104 over one month but after last week’s contented tone from BoJ governor Kuroda, this view is increasingly reliant on US yields kicking higher, probably not imminent despite the busy US calendar”, noted analysts at Westpac Global Strategy Group.
USD/JPY levels to watch
At the moment the pair is losing 0.01% at 101.83 with the next support at 101.32 (low Apr.11) ahead of 101.30 (low Mar.19) and finally 100.80 (200-d MA. On the upside, breakout of 102.16 (high Apr.9) would expose102.37 (daily cloud base) and then 102.67 (Kijun Sen).