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6 Sep 2013
USD/JPY extends the correction from 100.00
FXstreet.com (Edinburgh) -The USD is losing some ground against the Japanese yen on Friday, with the USD/JPY easing from peaks near 100.20 to the current area around 99.70.
USD/JPY focus on NFP
The better data from the US docket on Thursday lifted the pair beyond the triple-digit barrier, although gains lacked of sustainability afterwards. In the opinion of Jane Foley, Senior Strategist at Rabobank, “Overall we maintain our view that the USD will firm into the end of this year and into 2014 as the US economic outlook improves and as tapering of assets purchases gets underway. However, if the Fed is successful in projecting its message that tapering is not tightening and that its overall policy message is one of policy accommodation than the pace of USD gains should be moderate. We maintain our 12 mth forecast of USD/JPY105.00. Near-term, daily cloud top at USD/JPY99.29 is likely to provide technical support”.
USD/JPY levels to watch
The pair is now losing 0.40% at 99.69 with the immediate support at 99.32 (low Sep.4) ahead of 99.29 (cloud top) and finally 99.17 (low Sep.3). On the flip side, a breakout of 100.24 (high Sep.6) would expose 100.45 (highs. Jul.24/25) and then 101.05 (high Jul.22).
USD/JPY focus on NFP
The better data from the US docket on Thursday lifted the pair beyond the triple-digit barrier, although gains lacked of sustainability afterwards. In the opinion of Jane Foley, Senior Strategist at Rabobank, “Overall we maintain our view that the USD will firm into the end of this year and into 2014 as the US economic outlook improves and as tapering of assets purchases gets underway. However, if the Fed is successful in projecting its message that tapering is not tightening and that its overall policy message is one of policy accommodation than the pace of USD gains should be moderate. We maintain our 12 mth forecast of USD/JPY105.00. Near-term, daily cloud top at USD/JPY99.29 is likely to provide technical support”.
USD/JPY levels to watch
The pair is now losing 0.40% at 99.69 with the immediate support at 99.32 (low Sep.4) ahead of 99.29 (cloud top) and finally 99.17 (low Sep.3). On the flip side, a breakout of 100.24 (high Sep.6) would expose 100.45 (highs. Jul.24/25) and then 101.05 (high Jul.22).