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23 Feb 2015
USD/JPY upside capped at 119.40 – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, views that USD/JPY’s upside might remain capped at 119.40 levels, with the market awaiting Yellen’s testimony.
Key Quotes
“The USD/JPY pair hovers near 119.00 levels, thereby maintaining its 119.40-118.20 range as the Eurogroup’s decision to provide 4-month extension to Greece failed to trigger a big rally in the riskier assets.”
“The Yen traders would focus on Janet Yellen’s semi-annual testimony on the economy and monetary policy would be watched out by the markets. A rate hike in June is off the table post the Fed minutes released last week.”
“If Yellen stresses the need for patience, the rate hike expectations would be pushed out further. In such a case, treasury yields could decline, thereby strengthening the Yen.”
“On the other hand, if Yellen focuses on improvements in the economy and steps of policy normalization, the yields and the dollar could rise sharply.”
“Meanwhile, the US existing home sales and Chicago fed and Dallas Fed activity indices due for release today are unlikely to have any major impact on the USD/JPY pair.”
“Given a break below the hourly 200 MA at 119.03, the pair may re-test 118.42 (61.85 Fib retracement level of 117.16-120.46). On the other hand, the upside is likely to remain capped at 119.40 levels.”
Key Quotes
“The USD/JPY pair hovers near 119.00 levels, thereby maintaining its 119.40-118.20 range as the Eurogroup’s decision to provide 4-month extension to Greece failed to trigger a big rally in the riskier assets.”
“The Yen traders would focus on Janet Yellen’s semi-annual testimony on the economy and monetary policy would be watched out by the markets. A rate hike in June is off the table post the Fed minutes released last week.”
“If Yellen stresses the need for patience, the rate hike expectations would be pushed out further. In such a case, treasury yields could decline, thereby strengthening the Yen.”
“On the other hand, if Yellen focuses on improvements in the economy and steps of policy normalization, the yields and the dollar could rise sharply.”
“Meanwhile, the US existing home sales and Chicago fed and Dallas Fed activity indices due for release today are unlikely to have any major impact on the USD/JPY pair.”
“Given a break below the hourly 200 MA at 119.03, the pair may re-test 118.42 (61.85 Fib retracement level of 117.16-120.46). On the other hand, the upside is likely to remain capped at 119.40 levels.”