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May 10, 2013
Forex: USD/JPY eyes 102.00, USD unstoppable
FXstreet.com (Barcelona) - Nothing seems to stop the greenback since Thursday, pushing the cross to the doorsteps of the key 102.00 figure, levels last seen in October 2008.
According to Christopher Vecchio, Currency Analyst at DailyFX, Japanese investors bough foreign bonds in the last two weeks, after being sellers in that market since 2010. “Clearly, this is a result of ‘Abenomics’ or the BoJ’s ultra-easing policy: with yields non existent in Japan, investors are forced to search for yield elsewhere, driving down the value of the yen while boosting currencies with highly-rated sovereigns like the US dollar…. I expect USDJPY to rally towards 103.00 by the end of May”, concluded the expert.
At the moment the cross is up 1.30% at 101.90 facing the next hurdle at 102.00 (psychological level) ahead of 102.16 (high Oct.21 2008) and then 102.42 (high Oct.20 2008).
On the flip side, a break below 101.00 (psychological level) would expose 100.54 (low May 10) and finally 99.95 (high Apr.11).
According to Christopher Vecchio, Currency Analyst at DailyFX, Japanese investors bough foreign bonds in the last two weeks, after being sellers in that market since 2010. “Clearly, this is a result of ‘Abenomics’ or the BoJ’s ultra-easing policy: with yields non existent in Japan, investors are forced to search for yield elsewhere, driving down the value of the yen while boosting currencies with highly-rated sovereigns like the US dollar…. I expect USDJPY to rally towards 103.00 by the end of May”, concluded the expert.
At the moment the cross is up 1.30% at 101.90 facing the next hurdle at 102.00 (psychological level) ahead of 102.16 (high Oct.21 2008) and then 102.42 (high Oct.20 2008).
On the flip side, a break below 101.00 (psychological level) would expose 100.54 (low May 10) and finally 99.95 (high Apr.11).