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USD/JPY breaking the short term descending resistance line

FXStreet (Guatemala) - USD/JPY is trading at 117.72, having posted a daily high at 117.90 and low at 117.24.

USD/JPY has rallied, eventually, after the OPEC decision to leave production at 30 million barrels of oil per day, while bad news for producers, this is good news for stocks in general, USD/JPY and oil importers in Asia with the price of Brent Crude oil, the major bench mark for world oil prices, falling as low as $71.76 from $76.61 just today.

The price of Yen has moved through the descending resistance line from the channel from in the bears layer this week having posted highs last week up to 119.00, a move too soon it seemed, as voiced from officials in Japan and putting nerves into the less committed bulls.

A close above 118.20 would be required to put conviction back in to any rallies but while we await the elections in Japan in mic Dec volatility is likely to play out and tonight we get a fist full of Japanese data to keep us occupied during illiquid markets over thanksgiving in the US.

Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank noted that inflation in Japan is expected to drift down to 3%y/y on headline, 2.9%y/y ex fresh food and 2.2%y/y ex food and energy; retail trade, industrial production and household spending is expected to be weak. “A lot of bad news is priced in for Japan, leaving the larger risk an upside surprise”.

USD/JPY bad news already priced in to Japan - Scotiabank

Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank noted that USD/JPY has traded to a fresh six-session low, but is trading well within the range of the November 19/20 trading range of 116.82 to 118.98.
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