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9 Sep 2013
USD/JPY easing from peaks above 100.00
FXstreet.com (Edinburgh) -The USD momentum is receding at the beginning of the trading week, dragging the USD/JPY to the area around the mid 99.00s, retracing ground after overnight peaks beyond 100.00.
USD/JPY bolstered by 2020 Olympics, Japan GDP
News that Tokyo will host the 2020 Olympics boosted investors’ sentiment on Monday, pushing the benchmark Nikkei225 to a daily advance of 2.5% and weakening the yen at the same time. Japanese confidence found extra grip after the GDP Annualized expanded 3.8% during the second quarter, surpassing estimates at 3.7%. The implementation of the sales tax hike found some extra oxygen after the GDP figures, reinforcing the confidence in Abenomcis. “The dollar traded above the JPY100 for the first time since late July in the second half of last week, after having broken above the downtrend line drawn off the year's high struck in late May near JPY103.75. That trend line came in near JPY98.70 on Friday and it provided the greenback with some support… That downtrend line was the upper boundary of a large triangle pattern. As we have noted, this pattern is often subject to false breaks. Yet, unless the JPY98.50 area breaks, we prefer the upside and look a move back toward JPY99.50-70 in the days ahead”, suggested BBH Global Currency Strategy Team.
USD/JPY levels to watch
The pair is now up 0.36% at 99.43 with the next resistance at 100.11 (high Sep.9) followed by 100.24 (high Sep.6) and finally 100.45 (highs Jul.24/25). On the flip side, a breakdown of 99.29 (cloud top) would aim for 98.53 (Tenkan Sen) and then 98.27 (low Sep.2).
USD/JPY bolstered by 2020 Olympics, Japan GDP
News that Tokyo will host the 2020 Olympics boosted investors’ sentiment on Monday, pushing the benchmark Nikkei225 to a daily advance of 2.5% and weakening the yen at the same time. Japanese confidence found extra grip after the GDP Annualized expanded 3.8% during the second quarter, surpassing estimates at 3.7%. The implementation of the sales tax hike found some extra oxygen after the GDP figures, reinforcing the confidence in Abenomcis. “The dollar traded above the JPY100 for the first time since late July in the second half of last week, after having broken above the downtrend line drawn off the year's high struck in late May near JPY103.75. That trend line came in near JPY98.70 on Friday and it provided the greenback with some support… That downtrend line was the upper boundary of a large triangle pattern. As we have noted, this pattern is often subject to false breaks. Yet, unless the JPY98.50 area breaks, we prefer the upside and look a move back toward JPY99.50-70 in the days ahead”, suggested BBH Global Currency Strategy Team.
USD/JPY levels to watch
The pair is now up 0.36% at 99.43 with the next resistance at 100.11 (high Sep.9) followed by 100.24 (high Sep.6) and finally 100.45 (highs Jul.24/25). On the flip side, a breakdown of 99.29 (cloud top) would aim for 98.53 (Tenkan Sen) and then 98.27 (low Sep.2).