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20 Jun 2013
USD/JPY advances capped below 97.00
FXstreet.com (Barcelona) - The USD/JPY was able to notch impressive gains for a third day in a row, climbing 111 pips to close at 96.42.
US Dollar well bid across the board after FOMC
Marc Chandler, Head Currency Strategist at BBH provided some analysis regarding the Fed Statement release from earlier today. “The Fed statement noted that the downside risks have diminished since the fall, when it more than doubled the size of the its asset purchases. This, coupled with Bernanke's comment that tapering is possible later this year with QE ending purchases around the middle of next year, had a big impact on markets today”
Chandler went on to discuss the post FOMC price action in the foreign exchance markets. “Although the dollar had been trending lower against the major currencies since late May as the talk of tapering heated up, helped by comments by Bernanke himself, it rallied strongly against the major currencies in the aftermath of the Fed's statement and extended those gains in response to Bernanke's press conference, Chandler concluded.
Fib retracement at 97.50 remains key resistance
Val Bednarik, Chief Analyst at FXstreet.com provided some analysis regarding the technical developments after the recent gains from the past few days. “While current USD/JPY gains are no doubts impressive, but far from suggesting bears are done. The 23.6% retracement of the October/May run stands around 97.50, and only steady gains above the level will made bears tumble. However, the technical picture supports further gains in the pair, as price has broke below 200 SMA, while 100 one aims slowly higher well below current price. Buyers will now surge on dips towards 96.00/20 yet as long as the level holds, bulls will remain in control,” Bednarik concluded.
US Dollar well bid across the board after FOMC
Marc Chandler, Head Currency Strategist at BBH provided some analysis regarding the Fed Statement release from earlier today. “The Fed statement noted that the downside risks have diminished since the fall, when it more than doubled the size of the its asset purchases. This, coupled with Bernanke's comment that tapering is possible later this year with QE ending purchases around the middle of next year, had a big impact on markets today”
Chandler went on to discuss the post FOMC price action in the foreign exchance markets. “Although the dollar had been trending lower against the major currencies since late May as the talk of tapering heated up, helped by comments by Bernanke himself, it rallied strongly against the major currencies in the aftermath of the Fed's statement and extended those gains in response to Bernanke's press conference, Chandler concluded.
Fib retracement at 97.50 remains key resistance
Val Bednarik, Chief Analyst at FXstreet.com provided some analysis regarding the technical developments after the recent gains from the past few days. “While current USD/JPY gains are no doubts impressive, but far from suggesting bears are done. The 23.6% retracement of the October/May run stands around 97.50, and only steady gains above the level will made bears tumble. However, the technical picture supports further gains in the pair, as price has broke below 200 SMA, while 100 one aims slowly higher well below current price. Buyers will now surge on dips towards 96.00/20 yet as long as the level holds, bulls will remain in control,” Bednarik concluded.