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2 Aug 2013
USD/JPY eyes 100.00 again
FXstreet.com (London) - USD/JPY has found positive territory yet again, and is currently nestled beneath the psychological 100.00 handle.
USD/JPY has been a strong performer amongst a more dollar friendly environment again. The pair has risen from the lows in 97.58 and on a couple of attempts, has finally found its footing along a bull run to record a high of 99.71. The pair is sitting comfortably 99.60/70 in the opening of European markets and ahead of a busy day for the dollar yet again.
Yield moves favour further USD/JPY gains
Supporting further upside scope for Yen, the RBS Strategy teams said “Looking at yield movements this week, the scope appears to be opening up for a weaker JPY trend to be reinforced. While yields have lifted for other majors they have remained stable in Japan.Global equity markets are also stronger with improved activity data in the major economies, meeting more dovish central banks since July in the ECB and BoE, and the Fed emphasising its low rate guidance over QE taper. Stronger global equity market probably still help encourage capital outflow from Japan and use of JPY as a funding currency”.
US Non Farm Payrolls expectations
Whether the USD is going to be able to continue performing so well is now all down todays employment data from the US. Formal expectations for July non-farm payrolls comes at185k. However, the whisper number is likely to be slightly better following the positive ADP report. Analysts at Danske Bank said “We expect total payrolls to gain 175,000 in July and private job growth to reach 185,000. The service sector will remain the main contributor to job growth but the latest data from the manufacturing sector suggest that job growth in this part of the economy likely turned positive in July as well. We expect the government to continue to shed jobs at a 10,000 persons per month pace. We look for a one notch decline in the unemployment rate from 7.6% to 7.5%. This should support expectations of a September start to Fed's QE tapering”.
USD/JPY upside bias and levels
USD/JPY, with a current upside bias, trading above the pivot, 98.93, the 20d ma is at 99.47, the 50d ma is 98.84, and the 200d ma is 92.99. RSI (9) reads 54.11. Supports are ascending from 98.36, 98.50, 98.80, 99.18, 99.45. Spot is 99.72 with psychological resistance at 100.00, then 100.17 and 100.45.
USD/JPY has been a strong performer amongst a more dollar friendly environment again. The pair has risen from the lows in 97.58 and on a couple of attempts, has finally found its footing along a bull run to record a high of 99.71. The pair is sitting comfortably 99.60/70 in the opening of European markets and ahead of a busy day for the dollar yet again.
Yield moves favour further USD/JPY gains
Supporting further upside scope for Yen, the RBS Strategy teams said “Looking at yield movements this week, the scope appears to be opening up for a weaker JPY trend to be reinforced. While yields have lifted for other majors they have remained stable in Japan.Global equity markets are also stronger with improved activity data in the major economies, meeting more dovish central banks since July in the ECB and BoE, and the Fed emphasising its low rate guidance over QE taper. Stronger global equity market probably still help encourage capital outflow from Japan and use of JPY as a funding currency”.
US Non Farm Payrolls expectations
Whether the USD is going to be able to continue performing so well is now all down todays employment data from the US. Formal expectations for July non-farm payrolls comes at185k. However, the whisper number is likely to be slightly better following the positive ADP report. Analysts at Danske Bank said “We expect total payrolls to gain 175,000 in July and private job growth to reach 185,000. The service sector will remain the main contributor to job growth but the latest data from the manufacturing sector suggest that job growth in this part of the economy likely turned positive in July as well. We expect the government to continue to shed jobs at a 10,000 persons per month pace. We look for a one notch decline in the unemployment rate from 7.6% to 7.5%. This should support expectations of a September start to Fed's QE tapering”.
USD/JPY upside bias and levels
USD/JPY, with a current upside bias, trading above the pivot, 98.93, the 20d ma is at 99.47, the 50d ma is 98.84, and the 200d ma is 92.99. RSI (9) reads 54.11. Supports are ascending from 98.36, 98.50, 98.80, 99.18, 99.45. Spot is 99.72 with psychological resistance at 100.00, then 100.17 and 100.45.