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21 May 2013
USD/JPY eases to 102.60
FXstreet.com (Barcelona) - The USD rally is now losing momentum, drifting the pair back to the 102.60 region on Tuesday, ahead of the BoJ monetary policy meeting due tomorrow.
In the opinion of Christopher Vecchio, Currency Analyst at DailyFX, “a weak Yen is desired; but if the Yen gets too weak, it will have a negative impact on “people’s lives” as it would create excessive upside pressure on inflation, causing the BoJ to overshoot its target creating a volatile monetary policy; and any further selling of the Yen may be accompanied by selling in JGBs, which puts upside pressure on interest rate payments, which hurts government fiscal policy”.
USD/JPY is now advancing0.31% at 102.58 with the next resistance at 103.18 (high May 20) ahead of 103.32 (2013 high May 17) and finally 103.50 (low Sep.30 2008).
On the flip side, a breach of 102.08 (low May 21) would aim for 102.03 (MA200h) and then 102.00 (low May 20).
In the opinion of Christopher Vecchio, Currency Analyst at DailyFX, “a weak Yen is desired; but if the Yen gets too weak, it will have a negative impact on “people’s lives” as it would create excessive upside pressure on inflation, causing the BoJ to overshoot its target creating a volatile monetary policy; and any further selling of the Yen may be accompanied by selling in JGBs, which puts upside pressure on interest rate payments, which hurts government fiscal policy”.
USD/JPY is now advancing0.31% at 102.58 with the next resistance at 103.18 (high May 20) ahead of 103.32 (2013 high May 17) and finally 103.50 (low Sep.30 2008).
On the flip side, a breach of 102.08 (low May 21) would aim for 102.03 (MA200h) and then 102.00 (low May 20).