Posts tagged ‘USDJPY’

February 15, 2012

USD/JPY finds support

After falling around 40 pips in the American session from 78.60/70 high zone to break 78.40 support and reach intra-day low at 78.18, the USD/JPY seems to have found support at this level with the pair moving in range between 78.20 and 78.35 where the january 25th high placed at 78.28

February 15, 2012

Correlation between US Dollar/Japanese Yen and US 10-Year Treasury Note Yield


The US Dollar/Japanese Yen exchange rate has surged as the Bank of Japan announces aggressive monetary policy easing, while comparatively firm expectations for the US Federal Reserve leave the US Dollar on stronger footing. The Japanese central bank announced that it would further expand its balance sheet and create more Yen by purchasing Japanese Government Bonds (JGBs). This pushed JGB yields lower, while US Treasuries remained unchanged.
We believe that the US Dollar stands to gain further against the Japanese Yen on the Bank of Japan’s recent actions. Given the strong correlation between the USDJPY and yield differentials, interest rate and monetary policy expectations should be enough to lift the USDJPY steadily off of record lows.

February 13, 2012

USD/JPY Breaks Below 77.50

USD/JPY’s rally from 76 support stalled at 77.80, where the market ranged between that resistance and 77.50 support. As the 2/13 US session got underway, it fell below 77.50. The RSI in the 1H chart also fell below 40, showing loss of bullish momentum. We have noted the 77.30 pivot as a key level and if price can break below 77.30, and fall below the rising trendline, we should be seeing a slide toward 77.00. Below that, a test of 76.55 could be next.

The market is inside of a range with resistance at 78.25, so any bullish outlook should be capped at this level for now. A break above 78.25 would be a strong bullish signal outside of the short-term. This can start with a failure to break below 77.00 and a break back above 77.80. Otherwise, below 77.00, we look at the 76.55 support, and then 76.00 again.

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February 10, 2012

USD/JPY: likely heading for 78.07

From Dow Jones:

“USD/JPY is likely heading for 78.07, says Barclays Capital, which is its 200-day moving average. The bank says the break above 77.30 suggests this move is likely, but as this particular moving average has capped prices since last April it is expected to hold firm on a first attempt, resulting in a 78.07-77.00 range. USD/JPY now at the day’s high of 77.75.”