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20 Feb 2013
Forex Flash: USD/JPY expected to remain elevated - OCBC Bank
Emmanuel Ng of OCBC Bank believes that USD/JPY is expected to remain inherently oriented towards that North with the Jan trade deficit coming in deeper than expected.
In the short term however, he feels that the pair may be given to further bouts of of profit taking as the market searches for new impetus and he is expecting a 92.00-94.50 band to remain in force in the interim. Looking to AUD/USD he notes that the pairs price action yesterday may have nullified somewhat the recent downside tendency of the pair in the near term with the 200-day MA (1.0324) expected to serve as near term support. In the interim, markets may also find inspiration from supported iron ore prices and the positive equity environment with initial resistance expected towards 1.0410.
In the short term however, he feels that the pair may be given to further bouts of of profit taking as the market searches for new impetus and he is expecting a 92.00-94.50 band to remain in force in the interim. Looking to AUD/USD he notes that the pairs price action yesterday may have nullified somewhat the recent downside tendency of the pair in the near term with the 200-day MA (1.0324) expected to serve as near term support. In the interim, markets may also find inspiration from supported iron ore prices and the positive equity environment with initial resistance expected towards 1.0410.