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16 Sep 2013
USD/JPY under pressure as greenback sell off extends
FXstreet.com (Athens)- The USD/JPY is heading downwards since the opening of the European trading session, mainly due to the American dollar sharp sell off ahead of FMOC minutes.
The USD/JPY plummets as Summers pulls out of the race
Investors should not be taken aback because since the early opening on Sunday’s trading session, the greenback is falling apart. Summers was considered as one of the Fed’s members, more concerned about the unintended consequences of quantitative easing than the current chairman and also the other contender in the race, current Vice-Chair Janet Yellen. Thus, the Fed was seen reducing QE and raising rates earlier with him at the helm. On the opposite side stands Ms Yellen, who resembles Bernanke very much and she will probably toe a much likely stance to that of him. Elaborating on, Vice-Chair Yellen election is interpreted in market terms as of “Fed seen as holding stimulus for longer.” If Fed holds on stimulus and easing, traders should not find out-of the blue what happens since the early opening in Asian’s trading session on Sunday, i.e. dollar weakening and 'risk-assets' gaining. Finally, we should point-out that Japanese markets are closed today for the Respect for the Aged Day holiday.
Technical Outlook and Strategic Bias on USD/JPY
Garreth Berry, Analyst on behalf of UBS, suggests that “Any downside should be limited as bullish conditions persist. Strong support is at 98.21 and 97.64. Resistance is at 100.61 ahead of 101.53.”
The USD/JPY plummets as Summers pulls out of the race
Investors should not be taken aback because since the early opening on Sunday’s trading session, the greenback is falling apart. Summers was considered as one of the Fed’s members, more concerned about the unintended consequences of quantitative easing than the current chairman and also the other contender in the race, current Vice-Chair Janet Yellen. Thus, the Fed was seen reducing QE and raising rates earlier with him at the helm. On the opposite side stands Ms Yellen, who resembles Bernanke very much and she will probably toe a much likely stance to that of him. Elaborating on, Vice-Chair Yellen election is interpreted in market terms as of “Fed seen as holding stimulus for longer.” If Fed holds on stimulus and easing, traders should not find out-of the blue what happens since the early opening in Asian’s trading session on Sunday, i.e. dollar weakening and 'risk-assets' gaining. Finally, we should point-out that Japanese markets are closed today for the Respect for the Aged Day holiday.
Technical Outlook and Strategic Bias on USD/JPY
Garreth Berry, Analyst on behalf of UBS, suggests that “Any downside should be limited as bullish conditions persist. Strong support is at 98.21 and 97.64. Resistance is at 100.61 ahead of 101.53.”