31 Jul 2013
USD/JPY keeps highs ahead of FOMC
FXstreet.com (Edinburgh) -The USD/JPY remains in the upper end of today’s range so far, hovering over 98.30/40 after climbing to fresh peaks beyond 98.50 post-US data.
USD/JPY under pressure
According to market consensus, the FOMC would emphasize its forward guidance stance, remarking at the same time that ‘tapering’ is not ‘tightening’ and hence hampering the recent recovery in the greenback. Greg Gibbs, FX Trading Strategist at RBS assessed, “It is also possible that if the Fed decide to fine-tune its policy guidance in this way it might balance it by including an expected timetable for QE tapering or outline conditions that might allow tapering, such as the anticipated pace of improvement in the jobs market. It is considered unlikely that the QE tapering will begin this meeting. Most expect this to start in September”.
USD/JPY levels to watch
The pair is now advancing 0.26% at 98.31 with the next resistance at 98.47 (high Jul.30) ahead of 98.74 (cloud top) and finally 99.34 (Tenkan Sen). On the downside, a dip beyond 97.55 (cloud base) would aim for 97.29 (weekly Kijun Sen) and then 96.95 (low Jun.25).
USD/JPY under pressure
According to market consensus, the FOMC would emphasize its forward guidance stance, remarking at the same time that ‘tapering’ is not ‘tightening’ and hence hampering the recent recovery in the greenback. Greg Gibbs, FX Trading Strategist at RBS assessed, “It is also possible that if the Fed decide to fine-tune its policy guidance in this way it might balance it by including an expected timetable for QE tapering or outline conditions that might allow tapering, such as the anticipated pace of improvement in the jobs market. It is considered unlikely that the QE tapering will begin this meeting. Most expect this to start in September”.
USD/JPY levels to watch
The pair is now advancing 0.26% at 98.31 with the next resistance at 98.47 (high Jul.30) ahead of 98.74 (cloud top) and finally 99.34 (Tenkan Sen). On the downside, a dip beyond 97.55 (cloud base) would aim for 97.29 (weekly Kijun Sen) and then 96.95 (low Jun.25).