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14 Jan 2015
USD/JPY continues on a southernly journey
FXStreet (Guatemala) - USD/JPY is currently trading at 116.87 with a high of 117.98 and a low of 116.07 and down 0.82% on the day.
USD/JPY has been on the offer again and lost yet another handle. The pair's downtrend has been exacerbated by the poor performance in US data in respect of the retails sales. US retail sales dropped 0.9% in December, vs -0.1% consensus. Excluding auto sales it fell 1.0% against 0% expected.
USD/JPY now moves into the 116 territory and brings the December low's back in as a very viable target for the bears at 115.56. With plenty of focus on slowing global growth factors and risk associated with political uncertainty in various countries, volatility is likely to remain the theme and risk-off scenarios will support the Yen at times along a bumpy ride. That ride however is expected to return the major back into the 120's on the basis of a stronger dollar in 2015 and the divergence between the two opposing Central Banks. However, there is still room to the downside as Karen Jones, chief analyst at Commerzbank noted, "We note that the daily Elliot wave count is suggesting that we are likely to see a retracement towards 113.80/111.40."
USD/JPY has been on the offer again and lost yet another handle. The pair's downtrend has been exacerbated by the poor performance in US data in respect of the retails sales. US retail sales dropped 0.9% in December, vs -0.1% consensus. Excluding auto sales it fell 1.0% against 0% expected.
USD/JPY now moves into the 116 territory and brings the December low's back in as a very viable target for the bears at 115.56. With plenty of focus on slowing global growth factors and risk associated with political uncertainty in various countries, volatility is likely to remain the theme and risk-off scenarios will support the Yen at times along a bumpy ride. That ride however is expected to return the major back into the 120's on the basis of a stronger dollar in 2015 and the divergence between the two opposing Central Banks. However, there is still room to the downside as Karen Jones, chief analyst at Commerzbank noted, "We note that the daily Elliot wave count is suggesting that we are likely to see a retracement towards 113.80/111.40."