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26 Feb 2013
Forex: USD/JPY at upper 91 area
The USD/JPY went for a big drop yesterday, failing to hold at 94.00 and tumbling more than 300 pips to 90.91 low. A retracement to 92.75 followed but didn't last long, as the Asian session brought the pair back down. At the moment of writing, the market seems tempted at trading at 91.50/92.00 range.
Great demand for the Japanese Yen took place "as it became clear that Italy would have to return to the polls after a deadlock/hung parliament vote count, with the strong anti-austerity vote the key concern", wrote TD Securities analysts, explaining that Italy is not a ‘program’ country, at risk of default with bailout funds contingent on abiding to a strict austerity program.
"We can only assume at this point that risk has reverted to the downside", wrote Commerzbank analyst Karen Jones, expecting loss of 90.26 to trigger a slide to 88.05, the 38.2% retracement of the same move.
Great demand for the Japanese Yen took place "as it became clear that Italy would have to return to the polls after a deadlock/hung parliament vote count, with the strong anti-austerity vote the key concern", wrote TD Securities analysts, explaining that Italy is not a ‘program’ country, at risk of default with bailout funds contingent on abiding to a strict austerity program.
"We can only assume at this point that risk has reverted to the downside", wrote Commerzbank analyst Karen Jones, expecting loss of 90.26 to trigger a slide to 88.05, the 38.2% retracement of the same move.