29 Jan 2014
USD/JPY supported at 102.00
FXstreet.com (Edinburgh) - Today’s decline of the USD/JPY seems to have found support at the 102.00 handle on Tuesday, picking up pace now to the 102.25/30 region.
USD/JPY attention to the FOMC and EM
If the Fed decides to taper its asset purchases by $10 billion – in line with consensus - the pair could recover the ground lost after the recent inflows into the Japanese yen dragged spot from peaks near 105.00. The other critical scenario investors would likely follow would be the EM space in light of the recent sharp sell-off. “Our baseline forecast is that the FOMC will decide to end QE3 in December 2014, after tapering by $10bn at each meeting… Despite the fact that this view is widely held, the notion that the Fed would announce more tapering this week has been linked with the sharp sell-off in EM currencies in recent sessions”.
USD/JPY key levels
As of writing the pair is retreating 0.61% at 102.23 and a breach of 101.77 (38.2% of 95.81-105.45) would expose 101.76 (2014 low Jan.27). On the upside, the initial barrier aligns at 103.26 (high Jan.28) ahead of 103.35 (Tenkan Sen line) and finally 103.58 (high Jan.24).
USD/JPY attention to the FOMC and EM
If the Fed decides to taper its asset purchases by $10 billion – in line with consensus - the pair could recover the ground lost after the recent inflows into the Japanese yen dragged spot from peaks near 105.00. The other critical scenario investors would likely follow would be the EM space in light of the recent sharp sell-off. “Our baseline forecast is that the FOMC will decide to end QE3 in December 2014, after tapering by $10bn at each meeting… Despite the fact that this view is widely held, the notion that the Fed would announce more tapering this week has been linked with the sharp sell-off in EM currencies in recent sessions”.
USD/JPY key levels
As of writing the pair is retreating 0.61% at 102.23 and a breach of 101.77 (38.2% of 95.81-105.45) would expose 101.76 (2014 low Jan.27). On the upside, the initial barrier aligns at 103.26 (high Jan.28) ahead of 103.35 (Tenkan Sen line) and finally 103.58 (high Jan.24).