26 Sep 2013
USD/JPY surges as Nikkei cracks the 14,500
FXstreet.com (Athens) – The USD/JPY is trading much higher since mid-Asian trading session, due to renewed talks on corporate taxes and of course due to the fact that the Japanese currency is weakening across the board.
USD/JPY soars as it is widely known that tracks the Nikkei index
The USD/JPY was trading at lower levels at early European trading session as Nikkei much influenced by the re-emerging political drama of US debt-ceiling was on the down side. Later one, Nikkei managed to pare all the losses of 1.35% and moved inside a positive territory breaking the dam of the 14,500 units. Factors that led to the USD/JPY sharp uptrend movement were mostly the Japanese currency tumbling across the board and the renewed chattering on corporate taxes. Elaborating on, corporate taxes will probably alleviate the schedule sales tax on the first of April, i.e. the “Abenomics” fourth arrow to boost foreign investments in Japan as soon as possible. Last but not least at the time of writing, the newswires announce that “"Japanese government will study a corporate tax cut and advise public pension funds to raise allocations of risk assets".
Technical Outlook and Strategic Bias on USD/JPY
Emmanuel Ng of OCBC Bank, mentions that “the USD/JPY may remain under the weather amid broad based uncertainty in the short term with investors now increasingly skittish towards the JPY-crosses. Expect resistance for the USD-JPY around the 99.00/10 area and if the 55-day MA (98.69) is punctured, a drift towards 98.25 cannot be discounted.”
USD/JPY soars as it is widely known that tracks the Nikkei index
The USD/JPY was trading at lower levels at early European trading session as Nikkei much influenced by the re-emerging political drama of US debt-ceiling was on the down side. Later one, Nikkei managed to pare all the losses of 1.35% and moved inside a positive territory breaking the dam of the 14,500 units. Factors that led to the USD/JPY sharp uptrend movement were mostly the Japanese currency tumbling across the board and the renewed chattering on corporate taxes. Elaborating on, corporate taxes will probably alleviate the schedule sales tax on the first of April, i.e. the “Abenomics” fourth arrow to boost foreign investments in Japan as soon as possible. Last but not least at the time of writing, the newswires announce that “"Japanese government will study a corporate tax cut and advise public pension funds to raise allocations of risk assets".
Technical Outlook and Strategic Bias on USD/JPY
Emmanuel Ng of OCBC Bank, mentions that “the USD/JPY may remain under the weather amid broad based uncertainty in the short term with investors now increasingly skittish towards the JPY-crosses. Expect resistance for the USD-JPY around the 99.00/10 area and if the 55-day MA (98.69) is punctured, a drift towards 98.25 cannot be discounted.”