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12 Apr 2013
USD/JPY: Will Kuroda’s speech be the catalyst to take out 100?
FXstreet.com (Barcelona) - The USD/JPY closed flat at 99.79, briefly trading as high as 99.994 but again failing to take out key resistance of 100.00. The psychological level has seemed to be a ceiling over the last few sessions, with many focusing on Bank of Japan Governor Kuroda’s speech at 1:30 GMT as a possible catalyst for the pair.
“Someone or something is sitting at 100 it seems in USDJPY - there have been enough excuses and catalysts over the past week or so yet the highest Dollar Yen has been able to get to has been 99.94. So we are guessing there is a barrier there. How long for not sure but Kuroda is talking today and has been reiterating his commitment to liquidity and the debasement of the Yen just this week so it is really going to be about market positioning and we look forward to seeing the CFTC data tomorrow morning to see just how long the Yen bears have gotten to see if there is any chance of a snap back. For the moment though any weakness in USDJPY continues to be bought back aggressively. Key short term level is 98.51” noted Gregory McKenna of GlobalFX
From a technical perspective, price remains above both the upward sloping short term moving averages (9day/20day) which is a constructive development from a trend following view on the daily chart. Furthermore, the FXStreet.com Trend Index remains strongly bullish on the 1 hour chart, with the OB/OS Index displaying a neutral reading.
“Someone or something is sitting at 100 it seems in USDJPY - there have been enough excuses and catalysts over the past week or so yet the highest Dollar Yen has been able to get to has been 99.94. So we are guessing there is a barrier there. How long for not sure but Kuroda is talking today and has been reiterating his commitment to liquidity and the debasement of the Yen just this week so it is really going to be about market positioning and we look forward to seeing the CFTC data tomorrow morning to see just how long the Yen bears have gotten to see if there is any chance of a snap back. For the moment though any weakness in USDJPY continues to be bought back aggressively. Key short term level is 98.51” noted Gregory McKenna of GlobalFX
From a technical perspective, price remains above both the upward sloping short term moving averages (9day/20day) which is a constructive development from a trend following view on the daily chart. Furthermore, the FXStreet.com Trend Index remains strongly bullish on the 1 hour chart, with the OB/OS Index displaying a neutral reading.