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4 Jun 2013
USD/JPY holding above 100.00
FXstreet.com (London) - The pair has been heavy and drifting lower while USD/JPY did actually dip below 99.00 yesterday. It has come back above 100.00 since and is currently sitting on the figure.
“ The Nikkei recovered early losses to finish 2% higher, led by a 6% recovery in financials. Japanese government bonds sold off and the 10-year yield rose 6 bp to 0.88%. Technically, we suspect if the dollar is not able to move above JPY100.70, the downside correction may not be over, “ Said research teams at Brown Brothers Harriman.
Data wise, we have the US trade numbers coming up, and these could widen modestly in April as the lagged impact of the strengthening dollar tempers export activity and could push overall non-petroleum imports higher. However, the overall rise in the deficit will be tempered by weaker energy prices, which should lower the energy import bill. While 97.00 is in tact, the broader trend line is maintained towards 105.00. Support is seen at 98.45 and key resistance at 103.45.
“ The Nikkei recovered early losses to finish 2% higher, led by a 6% recovery in financials. Japanese government bonds sold off and the 10-year yield rose 6 bp to 0.88%. Technically, we suspect if the dollar is not able to move above JPY100.70, the downside correction may not be over, “ Said research teams at Brown Brothers Harriman.
Data wise, we have the US trade numbers coming up, and these could widen modestly in April as the lagged impact of the strengthening dollar tempers export activity and could push overall non-petroleum imports higher. However, the overall rise in the deficit will be tempered by weaker energy prices, which should lower the energy import bill. While 97.00 is in tact, the broader trend line is maintained towards 105.00. Support is seen at 98.45 and key resistance at 103.45.