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17 Jul 2013
USD/JPY moving away from lows
FXstreet.com (Barcelona) - USD/JPY has walked from yesterdays lows sub 99.00 to open 99.30/40 in European markets.
USD/JPY had reached 99.56 overnight in the Asian shift as the BoJ released June minutes.
There was some debate between members over measures that could be taken to decrease volatility in interest rates, bond prices and to also stablise Japanese share prices. However, most of the 9 members shared a recognition that, given Japan's economy was on a steady path toward recovery, Japanese financial markets, which had shown volatile movements recently, were likely to gradually regain stability. What some members didn’t want to do was give the wrong impression to markets that they are overreacting to short-term swings in yields and share prices and the recent volatility. They have put the volatility down to US policy. One of the measures discussed was to increase maturity dates on fixed rated funds it offers via the market. They also discussed and were split in promising to a hit a 2% inflation target within 2 years. For the US today, Bernanke will speak at 2GMT and the beige book is released at 6GMT.
USD/JPY focuses on cloud base
Axel Rudolph, Senior Technical Analyst at Commerzbank noted that the USD/JPY quote remains below its 101.60 78.6% retracement and attention remains on the base of the cloud circa 98.15. “It remains sandwiched between these two levels, but we suspect that overall risk is on the downside. Should the base of the cloud be eroded, it will leave the market under pressure and likely to slide back to 96.75/95.40 en route to the 93.75 recent low”.
USD/JPY had reached 99.56 overnight in the Asian shift as the BoJ released June minutes.
There was some debate between members over measures that could be taken to decrease volatility in interest rates, bond prices and to also stablise Japanese share prices. However, most of the 9 members shared a recognition that, given Japan's economy was on a steady path toward recovery, Japanese financial markets, which had shown volatile movements recently, were likely to gradually regain stability. What some members didn’t want to do was give the wrong impression to markets that they are overreacting to short-term swings in yields and share prices and the recent volatility. They have put the volatility down to US policy. One of the measures discussed was to increase maturity dates on fixed rated funds it offers via the market. They also discussed and were split in promising to a hit a 2% inflation target within 2 years. For the US today, Bernanke will speak at 2GMT and the beige book is released at 6GMT.
USD/JPY focuses on cloud base
Axel Rudolph, Senior Technical Analyst at Commerzbank noted that the USD/JPY quote remains below its 101.60 78.6% retracement and attention remains on the base of the cloud circa 98.15. “It remains sandwiched between these two levels, but we suspect that overall risk is on the downside. Should the base of the cloud be eroded, it will leave the market under pressure and likely to slide back to 96.75/95.40 en route to the 93.75 recent low”.