3 Jun 2013
USD/JPY finds support around 100.00
FXstreet.com (Barcelona) - After bottoming to the vicinity of the triple-digit support, the USD found buying interest that lifted the pair to the current 100.30/35 region.
The renewed strength of the Japanese yen dragged the pair from overnight highs around 100.70/75 as the risk-aversion context was dominating the early Asian trade. Against the backdrop of higher volatility in the Japanese debt markets as of late, Greg Gibbs, FX Trading Strategist at RBS, assessed, “The rise in Japanese yields to date is not so severe to suggest fears of a fiscal crisis. Real yields are still relatively low as inflation expectations have risen, and are likely to remain higher. We expect to see some combination of rising USD/JPY, rising Nikkei and rising JGB yields to continue”.
At the moment, the pair is down 0.15% at 100.29 with the next support at 99.95 (high Apr.11) followed by 99.90 (high Apr.22) and finally 99.57 (61.8% of 96.99-103.74). On the upside, a breakout of 100.73 (high Jun.3) would clear the way to 101.00 (psychological level) en route to 101.29 (high May 31).
The renewed strength of the Japanese yen dragged the pair from overnight highs around 100.70/75 as the risk-aversion context was dominating the early Asian trade. Against the backdrop of higher volatility in the Japanese debt markets as of late, Greg Gibbs, FX Trading Strategist at RBS, assessed, “The rise in Japanese yields to date is not so severe to suggest fears of a fiscal crisis. Real yields are still relatively low as inflation expectations have risen, and are likely to remain higher. We expect to see some combination of rising USD/JPY, rising Nikkei and rising JGB yields to continue”.
At the moment, the pair is down 0.15% at 100.29 with the next support at 99.95 (high Apr.11) followed by 99.90 (high Apr.22) and finally 99.57 (61.8% of 96.99-103.74). On the upside, a breakout of 100.73 (high Jun.3) would clear the way to 101.00 (psychological level) en route to 101.29 (high May 31).