17 Jul 2014
USD/JPY stuck around 101.50
FXStreet (Edinburgh) - The Japanese yen extends its buoyancy on Thursday, taking the USD/JPY to the area of the mid-101.00s so far.
USD/JPY lower on risk aversion
The resurgence of risk aversion following further sanctions against Russia by the US and the EU allowed the yen to gather steam vs. its American counterpart, pushing the pair lower from the 101.65/70 band. “Contrary to press rumours, the BoJ did slightly downgrade its GDP outlook for next fiscal year… Incrementally data is beginning to head in the wrong direction, yet USD/JPY refuses to budge. Sub 101.25/50, USD/JPY looks cheap to us. We may have to wait until Q2 GDP on Aug 13th. However, the calls for fresh policy stimulus should soon start to be heard”, assessed analysts at Westpac.
USD/JPY key levels
The pair is now losing 0.17% at 101.49 with the immediate support at 101.44 (low Jul.15) followed by 101.33 (low Jul.14) and finally 101.22 (low Jul.11). On the upside, a breakout of 101.81(61.8% of 102.27-101.06) would target 101.87 (high Jul.9) en route to 101.92 (high Jul.8).
USD/JPY lower on risk aversion
The resurgence of risk aversion following further sanctions against Russia by the US and the EU allowed the yen to gather steam vs. its American counterpart, pushing the pair lower from the 101.65/70 band. “Contrary to press rumours, the BoJ did slightly downgrade its GDP outlook for next fiscal year… Incrementally data is beginning to head in the wrong direction, yet USD/JPY refuses to budge. Sub 101.25/50, USD/JPY looks cheap to us. We may have to wait until Q2 GDP on Aug 13th. However, the calls for fresh policy stimulus should soon start to be heard”, assessed analysts at Westpac.
USD/JPY key levels
The pair is now losing 0.17% at 101.49 with the immediate support at 101.44 (low Jul.15) followed by 101.33 (low Jul.14) and finally 101.22 (low Jul.11). On the upside, a breakout of 101.81(61.8% of 102.27-101.06) would target 101.87 (high Jul.9) en route to 101.92 (high Jul.8).