FXStreet (Bali) – USD/JPY is skyrocketing in Asia, reaching its highest levels since December 2002, currently making new highs at 124.15/20.
Australia’s Capex drives USD higher
The disappointing Australia’s Capex number, which suggests the country remains some time away from the difficult transition from mining into non-mining investment, has prompted heavy USD buying across Asian currencies, especially the Aussie, and to a lesser degree, yet enough to see another breakout with substance, against the JPY.
USD/JPY with a target of 125.00 in mind
Some institutional banks have been calling for 125.00 as the next big target for USD/JPY bulls. At the current pace of appreciation, we might just be sessions away from the objective to be met. Note, however, that as the vertical climatic rise in the pair continues, Japanese officials should be more vocal talking up the Yen, warning about the pace of the Yen depreciation being undesirable.
(Market News Provided by FXstreet)