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14 Apr 2015
USD/JPY: A buyers market?
FXStreet (Guatemala) - USD/JPY is currently trading 119.98 with a high of 120.19 and a low of 119.94.
USD/JPY is attempting the downside with a go through the 120 handle again, with the last breach accomplishing as low as 119.70. This was a hard sell off of over a cent in early European trade that caught buyers interest back on to the 120 handle in the same hourly stick but left a bearish mark on the major that has been picked up again in Asia today.
Could this be a buyer's opportunity below 120.00?
We have recently seen further evidence of a sagging economy in China. This could suggest that risk sentiment is coming back, and with more data to come from the world's second largest economy this week, markets may begin to price in further stimulus requirements on yet poorer data, if this turns out to be the out come, and that could in turn spark and under pin a risk on theme that may see demand coming back in to the major.
On the other hand, the safe haven role that the Yen plays could spring in to action otherwise if there are global concerns as a result of a poor outlook for the Chinese economy initially and before there is any clarification of further market liquidity as a result of the People's Republic of China easing measures. Technically, we are in the same ranges, with the 120.82 late December high as resistance though, that a and the lows at 118.33 set in March as support on the wider ranges.
USD/JPY is attempting the downside with a go through the 120 handle again, with the last breach accomplishing as low as 119.70. This was a hard sell off of over a cent in early European trade that caught buyers interest back on to the 120 handle in the same hourly stick but left a bearish mark on the major that has been picked up again in Asia today.
Could this be a buyer's opportunity below 120.00?
We have recently seen further evidence of a sagging economy in China. This could suggest that risk sentiment is coming back, and with more data to come from the world's second largest economy this week, markets may begin to price in further stimulus requirements on yet poorer data, if this turns out to be the out come, and that could in turn spark and under pin a risk on theme that may see demand coming back in to the major.
On the other hand, the safe haven role that the Yen plays could spring in to action otherwise if there are global concerns as a result of a poor outlook for the Chinese economy initially and before there is any clarification of further market liquidity as a result of the People's Republic of China easing measures. Technically, we are in the same ranges, with the 120.82 late December high as resistance though, that a and the lows at 118.33 set in March as support on the wider ranges.