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3 Apr 2014
USD/JPY consolidating below 104.00
FXStreet (Edinburgh) - The Japanese yen is extending its depreciation on Thursday, lifting the USD/JPY beyond 104.00 the figure during the Asian session.
USD/JPY extends the rebound
After bottoming in sub-102.00 levels last week, spot sparked a correction higher following better risk sentiment, as geopolitical tensions and fears of a Chinese slowdown eased. In the opinion of Jane Foley, Senior FX Strategist at Rabobank, “Although the late 2013 uptrend in USD/JPY faltered at the start of January, since then there has been a large reduction in the level of JPY shorts suggesting that on another attempt to push the USD higher, the yen could be a point of least resistance. We target USD/JPY 107.00 on a 6 mth view”.
USD/JPY levels to consider
As of writing the pair is up 0.03% at 103.92 and a surpass of 104.07 (high Apr.3) would aim for 104.34 (76.4% of 105.45-100.76) and finally 104.84 (high Jan.23). On the downside, a break below 103.81 (low Apr.3) ahead of 103.10 (high Mar.12) and then 103.09 (low Apr.1).
USD/JPY extends the rebound
After bottoming in sub-102.00 levels last week, spot sparked a correction higher following better risk sentiment, as geopolitical tensions and fears of a Chinese slowdown eased. In the opinion of Jane Foley, Senior FX Strategist at Rabobank, “Although the late 2013 uptrend in USD/JPY faltered at the start of January, since then there has been a large reduction in the level of JPY shorts suggesting that on another attempt to push the USD higher, the yen could be a point of least resistance. We target USD/JPY 107.00 on a 6 mth view”.
USD/JPY levels to consider
As of writing the pair is up 0.03% at 103.92 and a surpass of 104.07 (high Apr.3) would aim for 104.34 (76.4% of 105.45-100.76) and finally 104.84 (high Jan.23). On the downside, a break below 103.81 (low Apr.3) ahead of 103.10 (high Mar.12) and then 103.09 (low Apr.1).