13 Jan 2015
USD/JPY bears liking their lips
FXStreet (Guatemala) - USD/JPY is currently trading at 118.51 with a high of 118.86 and low of 117.74 and up 0.15% on the day.
USD/JPY lost the 118 handle printing lows of 117.73 overnight. This was a move that had been on the cards and signifies intent from the bears in an increasingly looking bearish scenario. The move came with little reason, besides Japan's November current account surplus being larger than expected at JPY433 bln, while the drop in oil price may have been the improvement there.
Moreover, we are still within the familiar ranges between 117.74 and up to 120.83. Whether this will now be extended to 115.57 to 120.83 depends on 116.30 holding up on further declines. Risk aversion is key to the Yen's success while the greenback is favoured for further upside yet. The dollar index is still trading below its potential historically and markets are on the look out for anything hawkish from the Fed.
USD/JPY lost the 118 handle printing lows of 117.73 overnight. This was a move that had been on the cards and signifies intent from the bears in an increasingly looking bearish scenario. The move came with little reason, besides Japan's November current account surplus being larger than expected at JPY433 bln, while the drop in oil price may have been the improvement there.
Moreover, we are still within the familiar ranges between 117.74 and up to 120.83. Whether this will now be extended to 115.57 to 120.83 depends on 116.30 holding up on further declines. Risk aversion is key to the Yen's success while the greenback is favoured for further upside yet. The dollar index is still trading below its potential historically and markets are on the look out for anything hawkish from the Fed.