22 Aug 2013
USD/JPY retracing higher after yesterdays FOMC-induced plunge
FXstreet.com (New York) - The USD/JPY foreign exchange rate has crept higher during Asian trading, retracing off an earlier FOMC-induced plunge.
In Japan, Foreign bond investment (August 16) came in at ¥-903.8B, compared with a previous figure of ¥1625.2B. Moreover, Foreign investment in Japan stocks (August 16) was reported at ¥47.9B, relative to a figure of ¥-148.5B previously. In addition, the Nikkei again opened negatively, incurring staunch losses of -1.13% at the time of writing.
At this juncture, the USD/JPY is now navigating the region of 97.78, presently advancing at a rate +0.09% above its opening. Briefing the technicals, the USD/JPY advance will remain capped by resistances at 97.85 (August 20 high), onto 98.08 (August 19 high), and 98.30 (August 13 high).
USD/JPY strategic bias
According to Jim Langlands at FX Charts, “Technically, little has changed with the USD/JPY, and with the 4 hour indicators running pretty flat it looks as though we could be in for a bit more of the same, although I think the drift higher could continue. The topside for the dollar though, looks a bit limited, with a growing view that the current monetary policy may be running out of steam which could see some Yen demand as risk gets wound back and USD/JPY positions are cut.”
In Japan, Foreign bond investment (August 16) came in at ¥-903.8B, compared with a previous figure of ¥1625.2B. Moreover, Foreign investment in Japan stocks (August 16) was reported at ¥47.9B, relative to a figure of ¥-148.5B previously. In addition, the Nikkei again opened negatively, incurring staunch losses of -1.13% at the time of writing.
At this juncture, the USD/JPY is now navigating the region of 97.78, presently advancing at a rate +0.09% above its opening. Briefing the technicals, the USD/JPY advance will remain capped by resistances at 97.85 (August 20 high), onto 98.08 (August 19 high), and 98.30 (August 13 high).
USD/JPY strategic bias
According to Jim Langlands at FX Charts, “Technically, little has changed with the USD/JPY, and with the 4 hour indicators running pretty flat it looks as though we could be in for a bit more of the same, although I think the drift higher could continue. The topside for the dollar though, looks a bit limited, with a growing view that the current monetary policy may be running out of steam which could see some Yen demand as risk gets wound back and USD/JPY positions are cut.”