3 Dec 2013
USD/JPY bullish pressure prevails, below 103.00 at Tokyo open
FXstreet.com (Bali) - After extending gains for a forth consecutive day, setting a new 5-month high just above 103.00, the pair has broadened its downside correction by temporarily losing the 103.00 handle at the Tokyo open, now at 102.85, with Nikkei up 0.35% at the open.
Nikkei's bullish momentum bodes well for Yen bears
Nikkei breakout above 15,700 resistance is a key bullish development, potentially leading to further Yen weakness as the correlation between the two asset classes continues strong.
As Tim Riddell, FX Strategist at ANZ, noted last week, "a close above 15,700 in the Nikkei would be seen as opening the potential for 17,000 and a LT retracement level of 19,200 (38.2% range since 1990)."
USD/JPY technical outlook
According to Jim Langlands, Founder at FXCharts, the Yen technical stance remain quote bleak, with the Analyst suggesting that "a march towards the 103.73 target (22 May high) looks to be only a matter of time.",
Going forwards, Jim notes "we now need to consider what lies beyond this and I cannot see too much to stand in the way of the dollar heading sharply towards 105.25 (61.8% of 124.13/75.56), with 104.00, 104.50 and 105.00 all likely to be interim option related barriers."
Nikkei's bullish momentum bodes well for Yen bears
Nikkei breakout above 15,700 resistance is a key bullish development, potentially leading to further Yen weakness as the correlation between the two asset classes continues strong.
As Tim Riddell, FX Strategist at ANZ, noted last week, "a close above 15,700 in the Nikkei would be seen as opening the potential for 17,000 and a LT retracement level of 19,200 (38.2% range since 1990)."
USD/JPY technical outlook
According to Jim Langlands, Founder at FXCharts, the Yen technical stance remain quote bleak, with the Analyst suggesting that "a march towards the 103.73 target (22 May high) looks to be only a matter of time.",
Going forwards, Jim notes "we now need to consider what lies beyond this and I cannot see too much to stand in the way of the dollar heading sharply towards 105.25 (61.8% of 124.13/75.56), with 104.00, 104.50 and 105.00 all likely to be interim option related barriers."