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21 Oct 2013
Flash: USD/JPY looking to test 200-day MA 97.15 - BBH
FXstreet.com (Barcelona) - According to Marc Chandler, Head of FX at Brown Brothers Harriman, the USD/JPY looks poised to trade lower this week, as the pair prints a third lower high against the yen since peaking in late-May near JPY103.75.
Key Quotes
"Follow through selling was seen the next day and the greenback finished the week at six-day lows. The market appears to be set to re-test the 200-day moving average that had been successfully tested on the October 7-9. It is found near JPY97.15."
"Below there, the JPY96.50-70 band is reasonable near-term objective. Lending credence to this negative dollar-yen view, the US interest rate premium over Japan has slipped below 200 bp to its lowest level in nearly three weeks."