Daily review of USD/JPY (10 April 2013)
April 10, 2013 in Forex Analysis
The yen once again proved to be the highlight of the Forex market, tumbling against all major counterparts and reaching a four –year low against the dollar on Tuesday. The Japanese currency was only 34 pips away from 100.00 per dollar at yesterday’s session, before sliding a bit and hovering around the 99 level since then. At the time of writing the dollar was trading at ¥99.42, triggering bets that the Japanese currency will weaken even further and pass over the ¥ 100 level. The yen’s charts performance against the euro was similar as it plunged to a three-year low, trading at 1.3105 at 8.35 am GMT.
Since the new BOJ Governor Haruhiko Kuroda announced his aggressive monetary easing measures last week, the yen’s selling has increased even more. The BOJ determination is to end deflation by implying bolder plan which will double the money supply in the economy and its holdings of longer-term government bonds and exchange-traded funds for a period of two years.
On the other hand, analysts commented that investors watch closely whether the Fed will reduce the speed of its asset buying program as such step could prompt yen-buying and put pressure on the USD/JPY pair.
At yesterday’s trading the dollar was moving in the range of 98.65-99.60. This morning the currency pair was trading at 98.90-99.15.
Should the dollar successfully overcome the resistance zone at 99.15-99.35, the aim will be reaching and testing the zone at 99.60-99.80 JPY. If successful, the upward trend will continue to 100.00-100.15. If it falls below the support zone at 98.90-98.70, the next support zone is expected to be at 98.50-98.30. In case of a breakdown, the downward trend will continue to 98.00-97.75.
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