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The risk aversion put more pressure on USDJPY

Discussion in 'Current Market Sentiments' started by fx-recommends, May 15, 2014.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
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    The risk aversion continued its possession of the current market sentiment by dovish US industrial production in March has been drown down by 0.6% monthly, while the market was waiting for unchanged monthly figure after rising by 0.7% in march has been revised up to be by 0.9% driving the US treasuries yield down to watch UST 10YR now at 2.49% undermining the demand for the greenback.

    USDJPY could not have a place over 102 again following the release of this figure to retreat to its previous supporting level at 101.31, while the Japanese yen has been actually well-supported by the flash release of the Japanese GDP growth in Q1 which rose by 5.9%, while the market was waiting for 4.2% from 0.3% in the fourth quarter of last year.

    BOJ’s Chief Krouda came also to say that he is confident in the Japanese economic in the summer, after digesting the negative impact of the sales taxes rising by 3% this financial year to lower the probability of having precedent easing measures in the face of the negative consequences of this levy hiking.

    Kuroda has shown also trust in continued rising of the inflation to reach 2.1% yearly by 2017 financial year from 1.3% this year showing that all options are possible to BOJ to use to reach the 2% yearly inflation target of BOJ.

    God willing, USDJPY can meet now in the case of going down further below 101.31 supporting level at 101.19 which could support it 2 times last March, while breaking it can lead to 100.73, before the psychological level at 100 which can open the way to other lower supporting levels have been formed last year at 99.55, 99.08 and 97.61, while rising from here can be met by resisting level at 102.1 before 102.35 which capped the pair from getting over its 200 h4 moving average this week before 103 which has been reached last week on the release of US bullish labor report of April, while going over it can be met by higher resistance at 103.38 before 104.12 which has been reached also following the release of March US labor report in a repeated characteristic of this pair,while surpassing it can be followed by facing 105 psychological resisting level again which could hold on last January to bring he pair down from 104.92, while breaking it can open the way to this year high at 105.44 which has been reached in the beginning day of it.

    Kind Regards

    FX Market Strategist

    Walid Salah El Din

    Mob: +20 12 2465 9143

    E-Mail: mail@fx-recommends.com

  2. UFI2012

    UFI2012 New Member

    Nov 14, 2012
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    Within 2 weeks is a unique discount of 50%. The price for you will be 649.99$ only.

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