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19 Apr 2013
Forex: USD/JPY advances again capped at 98.50, G20 meetings still in focus
FXstreet.com (Barcelona) - The USD/JPY closed the session 4 pips lower at 98.21. The pair traded in a narrow range and advances continued to be capped by the 9dma (high price for 3rd straight day). Many market participants have been focused on the G20, looking to see if officials would critique Japan for its aggressive QE measured announced last month that surpassed previous policies in place.
According to Jane Foley of Rabobank, “Perhaps the main reason why the G-20 has decided not to point the finger directly at Japan and its policies is because it is not the only country which has been following an aggressive set of quantitative easing. The pledge made by the BoJ earlier this month that it would double its government bond holdings in 2 years is undeniably aggressive. However, over the past few years up to this month the QE followed by the Federal Reserve has been even more aggressive. After the yen the USD was the second weakest G10 currency in 2012.”
From a technical standpoint, there hasn’t been much development over the past few sessions. The 9dma continues to cap advances over the last 3 days and should be in focus going into the end of the week. A move through 98.50 opens the door to 99.00 area (previous support, now resistance on daily chart). First support is seen at 97.60 (short term uptrend support line), followed by 96.50 (previous resistance, now support on daily chart)
According to Jane Foley of Rabobank, “Perhaps the main reason why the G-20 has decided not to point the finger directly at Japan and its policies is because it is not the only country which has been following an aggressive set of quantitative easing. The pledge made by the BoJ earlier this month that it would double its government bond holdings in 2 years is undeniably aggressive. However, over the past few years up to this month the QE followed by the Federal Reserve has been even more aggressive. After the yen the USD was the second weakest G10 currency in 2012.”
From a technical standpoint, there hasn’t been much development over the past few sessions. The 9dma continues to cap advances over the last 3 days and should be in focus going into the end of the week. A move through 98.50 opens the door to 99.00 area (previous support, now resistance on daily chart). First support is seen at 97.60 (short term uptrend support line), followed by 96.50 (previous resistance, now support on daily chart)