19 Feb 2015
USD/JPY further fall likely – FXStreet
FXStreet (Barcelona) - According to FXStreet Editor and Analyst, Omkar Godbole, the macro picture combined with a dovish Fed points towards further strength in the Japanese Yen, as such a move below 118.42 is likely for the pair.
Key Quotes
“The USD/JPY dropped in the previous session, although the losses were once again capped at the 118.42 (61.8% retracement of 117.16-120.46).”
“The pair fell from a high of 119.39, tracking the fall in the US Treasury yields. The 10-year yield fell almost 10 basis points intraday, while the 5-year yields saw a biggest single day fall; down 10 bps. Consequently, the Japanese Yen gained strength.”
“Moreover, the yields came under pressure after the Fed minutes revealed many policymakers were in favor of holding interest rates at record lows for a longer period of time. This, coupled with a string of weak economic data in the US could push the rate hike bets far out in Q4 2015. Thus, the likelihood of the pair falling further is high.”
“A break below 118.42, could push the pair down to 117.94 (76.4% retracement).”
“The pair has repeatedly sustained above 118.30-118.42 area since 9th Feb. Thus, a break below the same is likely to see a sharp sell-off, which could be extended even to 117.57 levels.”
“On the pother hand, rise above 118.81 could see the pair re-test 119.20 levels.”
Key Quotes
“The USD/JPY dropped in the previous session, although the losses were once again capped at the 118.42 (61.8% retracement of 117.16-120.46).”
“The pair fell from a high of 119.39, tracking the fall in the US Treasury yields. The 10-year yield fell almost 10 basis points intraday, while the 5-year yields saw a biggest single day fall; down 10 bps. Consequently, the Japanese Yen gained strength.”
“Moreover, the yields came under pressure after the Fed minutes revealed many policymakers were in favor of holding interest rates at record lows for a longer period of time. This, coupled with a string of weak economic data in the US could push the rate hike bets far out in Q4 2015. Thus, the likelihood of the pair falling further is high.”
“A break below 118.42, could push the pair down to 117.94 (76.4% retracement).”
“The pair has repeatedly sustained above 118.30-118.42 area since 9th Feb. Thus, a break below the same is likely to see a sharp sell-off, which could be extended even to 117.57 levels.”
“On the pother hand, rise above 118.81 could see the pair re-test 119.20 levels.”