CATEGORY USD/JPY

USD/JPY: bullish  prevails despite Yen strength – Scotiabank

USD/JPY: bullish prevails despite Yen strength – Scotiabank

FXStreet (Guatemala) – Eric Theoret, CFA, CMT FX Strategist at Scotiabank explained that the JPY is outperforming its G4 peers with a modest 0.3% gain, rallying back to its 200 day MA after reaching a fresh two-month low.

Key Quotes:

“JPY risk is elevated this week as we consider the potential for further decline driven by relative central bank policy, with a focus on divergence given Wednesday’s Fed and Thursday’s (late NA session) BoJ policy decision.

Roughly two thirds of the Bloomberg forecast contributors (23 of 37) expect an hold in the pace of BoJ purchases, currently running at an annualized rate of ¥80trn.

14 expect an increase in the pace, ranging from ¥85trn to ¥100trn. Options prices have undergone a dramatic shift over the past two months, with a notable moderation in demand for protection against downside risk in USD/JPY (JPY gains) and current levels suggesting a modest premium for those looking to protect against USD/JPY gains (JPY decline). We are biased to upside risk in USD/JPY.”

Eric Theoret, CFA, CMT FX Strategist at Scotiabank explained that the JPY is outperforming its G4 peers with a modest 0.3% gain, rallying back to its 200 day MA after reaching a fresh two-month low.

(Market News Provided by FXstreet)

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USD/JPY hits fresh lows under 120.00

FXStreet (Córdoba) – USD/JPY dropped further after Wall Street opening bell and dropped momentarily below 120.00. The pair bottomed at 119.96, the lowest since Thursday and then bounced back above 120.00.

Currently it trades at 120.08/12, 50 pips below the level it closed on Friday. The pair is moving with bearish intraday trend. Stocks in Wall Street opened the Fed week in negative. The Dow Jones was down 0.24% and the Nasdaq was losing 0.35%. US government bond yields were falling with the 10-year yield at 2.17%.

USD/JPY technical levels

To the upside, resistance levels now might be located at 120.15, 120.45 (European session high) and 120.85 (daily high). On the opposite direction support could be located at 119.96 (Sept 10. 14 low), 119.65 and 119.20.

USD/JPY dropped further after Wall Street opening bell and dropped momentarily below 120.00. The pair bottomed at 119.96, the lowest since Thursday and then bounced back above 120.00.


(Market News Provided by FXstreet)

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