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4 Oct 2013
USD/JPY threatens 97.00 support as BoJ let down investors
FXstreet.com (Athens) – The USD/JPY has been trading downwards since the kick off of the Asian opening trading session for a fourth consecutive day amidst greenback’s weakening across the board, as well as on the Nikkei’s sharp fall.
USD/JPY breaks 97.00 area amidst US political jitters, BoJ letting down traders
The USD/JPY is severely wounded since the opening of the Asian trading session, as besides the wounded American dollar due to the possibility of US crashing into the debt ceiling becomes more of a reality, the BoJ let down investors earlier. Elaborating on, the Bank of Japan concluded its policy meeting with a unanimous vote to hold policy steady while continuing a 60-70 trillion monetary base plan. Thus, the BoJ decision to stay “on hold” let down traders all over the globe, as the vast majority of carry traders had been under pressure during the whole week due to the market-wide slide in the yen crosses. Unfortunately for them BoJ failed to reinforce hope for more and the USD/JPY came under renewed pressure. Needless to say, there was also little in the way of any other changes regarding BoJ and the statement that followed turned out to be rather uneventful.
Technical Outlook on the USD/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests that the USD/JPY is on course for the 200 day ma at 96.63, the August low at 95.80 and the 95.58 5 month support line. This is expected to hold the downside and provoke reversal.”
USD/JPY breaks 97.00 area amidst US political jitters, BoJ letting down traders
The USD/JPY is severely wounded since the opening of the Asian trading session, as besides the wounded American dollar due to the possibility of US crashing into the debt ceiling becomes more of a reality, the BoJ let down investors earlier. Elaborating on, the Bank of Japan concluded its policy meeting with a unanimous vote to hold policy steady while continuing a 60-70 trillion monetary base plan. Thus, the BoJ decision to stay “on hold” let down traders all over the globe, as the vast majority of carry traders had been under pressure during the whole week due to the market-wide slide in the yen crosses. Unfortunately for them BoJ failed to reinforce hope for more and the USD/JPY came under renewed pressure. Needless to say, there was also little in the way of any other changes regarding BoJ and the statement that followed turned out to be rather uneventful.
Technical Outlook on the USD/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests that the USD/JPY is on course for the 200 day ma at 96.63, the August low at 95.80 and the 95.58 5 month support line. This is expected to hold the downside and provoke reversal.”