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5 Feb 2013
Forex: USD/JPY in fresh highs around 93.20/25
Another bout of Japanese yen weakness is pushing the cross to new intraday highs above the 93.20 level on Tuesday, as risk appetite is creeping back to the markets.
“We expect the currency pair to trade in a 90-100 range over the next three months as Japanese institutional clients lower their hedges and importers keep bidding for dollars on dips… Verbal interventions are also set to keep supporting USDJPY. Prime Minister Abe again repeated his desire for the Bank of Japan to pursue 'bold monetary easing' to achieve its new 2% inflation target 'as soon as possible'”, explained M.Mohi-uddin, Director of FX Strategy at UBS.
At the moment, the cross is advancing 0.86% at 93.18
Next resistance levels line up at 93.65 (high May 13 2010) followed by 93.96 (38.2% of 2007-2011 drop).
On the flip side, a breakdown of 91.62 (low Feb.1) would open the door to 91.15 (MA10d).
“We expect the currency pair to trade in a 90-100 range over the next three months as Japanese institutional clients lower their hedges and importers keep bidding for dollars on dips… Verbal interventions are also set to keep supporting USDJPY. Prime Minister Abe again repeated his desire for the Bank of Japan to pursue 'bold monetary easing' to achieve its new 2% inflation target 'as soon as possible'”, explained M.Mohi-uddin, Director of FX Strategy at UBS.
At the moment, the cross is advancing 0.86% at 93.18
Next resistance levels line up at 93.65 (high May 13 2010) followed by 93.96 (38.2% of 2007-2011 drop).
On the flip side, a breakdown of 91.62 (low Feb.1) would open the door to 91.15 (MA10d).