Back
14 Apr 2015
USD/JPY might test sub-119 levels – MP
FXStreet (Barcelona) - Dean Popplewell, Director of Currency Analysis at MarketPulse, believes that JPY crosses might lead to USD/JPY falling below 119 levels again.
Key Quotes
“Yen, with a little help from a Japanese advisor or two, has managed to break the dollar trend over the past two sessions. USD/JPY (¥119.70) has fallen back on comments from Japan PM Abe’s advisor Hamada. In various interviews this week, the professor has said that JPY selling is approaching its limit. He has managed to single handily talk USD/JPY down just shy of ¥121 to well below ¥120 as investors head Stateside preferring to exit long dollar trades in thin trading.”
“According to Hamada, Yen is weak at ¥120, calling for ¥105 as an appropriate level for the Japanese currency. He reiterated that the Bank of Japan’s monetary policy has been working well, and more consumption in Japan is expected as stocks rise.”
“Outright dollar heaviness is eyed back towards ¥120, the supposed site of option expires.”
“Analysts will continue to look to the Yen crosses for JPY support, especially now that the market has managed to penetrate AUD/JPY 200-HMA at 91.56 overnight, fueling more tech sellers (yen buyers).”
“Now that the mid-March EUR/JPY lows have been broken 128.00, any break with momentum could provide JPY with support and lead the crosses to push USD/JPY to retest sub-¥119 again in time.”
Key Quotes
“Yen, with a little help from a Japanese advisor or two, has managed to break the dollar trend over the past two sessions. USD/JPY (¥119.70) has fallen back on comments from Japan PM Abe’s advisor Hamada. In various interviews this week, the professor has said that JPY selling is approaching its limit. He has managed to single handily talk USD/JPY down just shy of ¥121 to well below ¥120 as investors head Stateside preferring to exit long dollar trades in thin trading.”
“According to Hamada, Yen is weak at ¥120, calling for ¥105 as an appropriate level for the Japanese currency. He reiterated that the Bank of Japan’s monetary policy has been working well, and more consumption in Japan is expected as stocks rise.”
“Outright dollar heaviness is eyed back towards ¥120, the supposed site of option expires.”
“Analysts will continue to look to the Yen crosses for JPY support, especially now that the market has managed to penetrate AUD/JPY 200-HMA at 91.56 overnight, fueling more tech sellers (yen buyers).”
“Now that the mid-March EUR/JPY lows have been broken 128.00, any break with momentum could provide JPY with support and lead the crosses to push USD/JPY to retest sub-¥119 again in time.”