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16 Jan 2015
USD/JPY making a minor recovery to 116.61 the high
FXStreet (Guatemala) - USD/JPY is currently trading at 116.39 with a high of 116.61 and a low of 115.89 and up 0.07% on the day.
USD/JPY is making some ground now to the upside while there was some recovery in the Nikkei that closed the bearish gap. Markets are relatively choppy with the aftermath of the overnight activity around the shock in the SNB. The floor in EUR/CHF was suddenly dropped after recent vows to keep the CHF capped to stave of price pressures in the country and damaging exporters.
However, the bank has non formally betted against a much weaker EUR ahead of the expected QE as a result of next weeks ECB meeting and announcements. The Yen has been a benefactor of the risk aversion which took the pair down from the vicinity of the 118 handle and brings the 115.57 Dec lows into the foreground. However, as markets begin to digest the SNB and likely ramifications, analysts are beginning to bet that the dollar will come out string on the back of subsequent diversification of cash flows.
As we stand the unit is still trading within familiar ranges and volatility is likely to continue between the mid point of the 115 handle and tops of sticks up to 117.20. The trend formation is currently to the downside, and Jim Langlands at FX Charts explains, "I think we are in for a pretty choppy session, but again with a downside bias. The Nikkei looks as though it will have another tough session and that will not assist the dollar. Later on it will be down to the US CPI, where a soft reading (exp 0.1% mm Dec, 1.7% yy) would see the dollar head lower, and vice versa".
USD/JPY is making some ground now to the upside while there was some recovery in the Nikkei that closed the bearish gap. Markets are relatively choppy with the aftermath of the overnight activity around the shock in the SNB. The floor in EUR/CHF was suddenly dropped after recent vows to keep the CHF capped to stave of price pressures in the country and damaging exporters.
However, the bank has non formally betted against a much weaker EUR ahead of the expected QE as a result of next weeks ECB meeting and announcements. The Yen has been a benefactor of the risk aversion which took the pair down from the vicinity of the 118 handle and brings the 115.57 Dec lows into the foreground. However, as markets begin to digest the SNB and likely ramifications, analysts are beginning to bet that the dollar will come out string on the back of subsequent diversification of cash flows.
As we stand the unit is still trading within familiar ranges and volatility is likely to continue between the mid point of the 115 handle and tops of sticks up to 117.20. The trend formation is currently to the downside, and Jim Langlands at FX Charts explains, "I think we are in for a pretty choppy session, but again with a downside bias. The Nikkei looks as though it will have another tough session and that will not assist the dollar. Later on it will be down to the US CPI, where a soft reading (exp 0.1% mm Dec, 1.7% yy) would see the dollar head lower, and vice versa".