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14 Aug 2013
USD/JPY highs 98.44
FXstreet.com (Barcelona) - USD/JPY has continued to rise and is considerably higher than at Mondays opening, scoring 200 pips ups by midweek.
Greg Gibbs, strategist at RBS, noted that arguably the yield spreads are more important for currencies at the short end of the curve where they directly effect hedging and carry costs. "…the rise in yields every where except Japan is consistent with the rebound in USD/JPY. The turn around in USD/JPY this week will have frustrated traders that may have been stopped out by surprising USD weakness last week that has this week reversed”.
USD/JPY meeting the 55 dma 98.47
USD/JPY has managed come into range of the 55 dma at 98.47 where it may find strong resistance in the absence of positive US data otherwise reinforcing the move higher. However there appears to be momentum that is still in this move. The 20 dma is 98.45, 50 dma 98.32 and 200 dma 93.68. RSI (9) reads 52.13. Supports are ascending from 96.65, 96.86, 97.14, 97.45 and 97.95. Spot is currently 98.34 while resistances are 98.59, 98.78 and 99.15.
Greg Gibbs, strategist at RBS, noted that arguably the yield spreads are more important for currencies at the short end of the curve where they directly effect hedging and carry costs. "…the rise in yields every where except Japan is consistent with the rebound in USD/JPY. The turn around in USD/JPY this week will have frustrated traders that may have been stopped out by surprising USD weakness last week that has this week reversed”.
USD/JPY meeting the 55 dma 98.47
USD/JPY has managed come into range of the 55 dma at 98.47 where it may find strong resistance in the absence of positive US data otherwise reinforcing the move higher. However there appears to be momentum that is still in this move. The 20 dma is 98.45, 50 dma 98.32 and 200 dma 93.68. RSI (9) reads 52.13. Supports are ascending from 96.65, 96.86, 97.14, 97.45 and 97.95. Spot is currently 98.34 while resistances are 98.59, 98.78 and 99.15.