24 Mar 2014
USD/JPY breaks though 102.50 as Nikkei 225 soars
FXStreet (Bali) - USD/JPY is exhibiting decent strength during Asian hours, posting a session high of 102.55 after a close of 102.20 last Friday in NY.
Nikkei 225 revives bulls, Fed/BoJ policies in focus
The latest surge in Yen crosses came fueled by an additional 0.7% gains on the Nikkei 225, which added to the initial 1% positive open, resulting on the benchmark Japanese index trading over +1.7% higher at the time of writing.
Fundamentally, the market remains in wait and see mode until further clues on Fed/BoJ monetary policies are given. On the BoJ side, the next 1/2 months will be crucial to assess the impact of a sales tax hike on consumers, and whether or not further easing is needed. On the other side of the pond, players are looking for further reassurance to help cement the idea of potential rate hikes by the Fed in Q1 2015, which would be in line with the '6-month' timeframe suggested by Yellen last Wed, should gradual QE taper continue its course.
USD/JPY technicals
In view of Jim Langlands, Founder at FXCharts: "Immediate resistance is at minor descending trend resistance at 102.40, which is also the daily cloud base and 200 DMA, and looks as though it could prove rather a hurdle break back above. If successful, then there will be plenty of keen sellers in the 102.50/60 range (daily Kijun 102.48 last weeks high : 102.63), with more queuing up at 102.77(61.8% of 103.75/100.20/weekly Kijun), which should be quite strong, and then at 103.00 (103.07: daily cloud top/50% pivot of 105.43/100.75) – again, very strong – and then 103.15 (76.4%)."
Nikkei 225 revives bulls, Fed/BoJ policies in focus
The latest surge in Yen crosses came fueled by an additional 0.7% gains on the Nikkei 225, which added to the initial 1% positive open, resulting on the benchmark Japanese index trading over +1.7% higher at the time of writing.
Fundamentally, the market remains in wait and see mode until further clues on Fed/BoJ monetary policies are given. On the BoJ side, the next 1/2 months will be crucial to assess the impact of a sales tax hike on consumers, and whether or not further easing is needed. On the other side of the pond, players are looking for further reassurance to help cement the idea of potential rate hikes by the Fed in Q1 2015, which would be in line with the '6-month' timeframe suggested by Yellen last Wed, should gradual QE taper continue its course.
USD/JPY technicals
In view of Jim Langlands, Founder at FXCharts: "Immediate resistance is at minor descending trend resistance at 102.40, which is also the daily cloud base and 200 DMA, and looks as though it could prove rather a hurdle break back above. If successful, then there will be plenty of keen sellers in the 102.50/60 range (daily Kijun 102.48 last weeks high : 102.63), with more queuing up at 102.77(61.8% of 103.75/100.20/weekly Kijun), which should be quite strong, and then at 103.00 (103.07: daily cloud top/50% pivot of 105.43/100.75) – again, very strong – and then 103.15 (76.4%)."