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21 May 2014
USD/JPY regains 101.00
FXStreet (Edinburgh) - The greenback is now picking up pace vs. the yen on Wednesday, lifting the USD/JPY back above the 101.00 handle after dipping to the 100.80 area.
USD/JPY weaker on BoJ, US yields
The Japanese yen got extra wings after the BoJ left its policy unchanged in today’s policy meeting, with Governor Kuroda leaving no room for speculations regarding further easing in the upcoming months. Adding to the USD weakness, lower yields in the US weighed on the demand by Japanese investors. In the data space, a lower deficit trade also collaborated with the firmer tone in the JPY. “USDJPY's 100.76 low of early February still holds, after the pair pierced through the 101.19 200-day MA, but the short term trend points to further JPY gains against the USD. A dovish undertone in today's FOMC minutes may prove the catalyst for a push below 100”, observed Shaun Osborne, Chief FX Strategist at TD Securities.
USD/JPY relevant levels
As of writing, the pair is down 0.25% at 101.07 with the next support at 100.76 (2014 low Feb.4) followed by 100.63 (50% of 95.81-105.45) and then 100.00 (psychological level). On the other hand, a break above 101.39 (high May 21) would aim for 101.59 (Tenkan Sen) and finally 101.67 (10-d MA).
USD/JPY weaker on BoJ, US yields
The Japanese yen got extra wings after the BoJ left its policy unchanged in today’s policy meeting, with Governor Kuroda leaving no room for speculations regarding further easing in the upcoming months. Adding to the USD weakness, lower yields in the US weighed on the demand by Japanese investors. In the data space, a lower deficit trade also collaborated with the firmer tone in the JPY. “USDJPY's 100.76 low of early February still holds, after the pair pierced through the 101.19 200-day MA, but the short term trend points to further JPY gains against the USD. A dovish undertone in today's FOMC minutes may prove the catalyst for a push below 100”, observed Shaun Osborne, Chief FX Strategist at TD Securities.
USD/JPY relevant levels
As of writing, the pair is down 0.25% at 101.07 with the next support at 100.76 (2014 low Feb.4) followed by 100.63 (50% of 95.81-105.45) and then 100.00 (psychological level). On the other hand, a break above 101.39 (high May 21) would aim for 101.59 (Tenkan Sen) and finally 101.67 (10-d MA).