13 Mar 2014
USD/JPY is nestling in on support 101.60’s in a risk-off market
FXStreet (Guatemala) - There are tensions building upon the Ukrainian situation with reports of Russian troop build-ups along the Ukrainian border.
USD/JPY, however has also improved upon economic fundamentals, as Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman noted and explained that Japan reported a much larger than expected jump in machine orders, a proxy for capital investment. “The 13.4% increase in the month of January was nearly twice the consensus forecast and bodes well for Q1 growth, which is expected to show substantial improvement over the 0.2% pace recorded in both Q3 and Q4 13. Separately, the MOF reported that Japanese investors sold foreign bonds for the second consecutive week and have now fully offset the purchases in the previous two week. Foreign investors bought JPY384 bln of Japanese shares last week, the most for this year, so far."
USD/JPY Levels
The 20 DMA is 102.38, the 50 DMA is 102.94 and the 200 DMA is 100.25. RSI (14) reads in oversold territory as 22.90.
USD/JPY, however has also improved upon economic fundamentals, as Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman noted and explained that Japan reported a much larger than expected jump in machine orders, a proxy for capital investment. “The 13.4% increase in the month of January was nearly twice the consensus forecast and bodes well for Q1 growth, which is expected to show substantial improvement over the 0.2% pace recorded in both Q3 and Q4 13. Separately, the MOF reported that Japanese investors sold foreign bonds for the second consecutive week and have now fully offset the purchases in the previous two week. Foreign investors bought JPY384 bln of Japanese shares last week, the most for this year, so far."
USD/JPY Levels
The 20 DMA is 102.38, the 50 DMA is 102.94 and the 200 DMA is 100.25. RSI (14) reads in oversold territory as 22.90.