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30 Sep 2013
USD/JPY capped by 98.00
FXstreet.com (Edinburgh) -The delicate fiscal situation in the US economy is dragging the USD/JPY lower at the beginning of the week, as the likeliness of a government shutdown across the pond has grown bigger.
USD/JPY eyes on tomorrow’s deadline
The greenback is suffering across the board along with its condition of safe haven, as investors are showing their preference for the Japanese yen and the Swiss franc. It is worth noting that even in the occurrence of a brief shutdown in the US economy, that would be enough to postpone any expectations of QE tapering, adding further selling pressure to the USD. The research team at BTMU observed, “if the market is convinced that Japan politics is moving forward with Abenomics then it would not be surprising to see above 100 level with higher Japanese equity prices”.
USD/JPY critical levels
At the moment the pair is retreating 0.46% at 97.82 facing the immediate support at 97.45 (low Aug.29) ahead of 96.81 (low Aug.28) and finally 96.39 (MA200d). On the flip side, a break above 99.14 (high Sep.26) would open the door to 99.18 (high Sep.24) and then 99.67 (high Sep.20).
USD/JPY eyes on tomorrow’s deadline
The greenback is suffering across the board along with its condition of safe haven, as investors are showing their preference for the Japanese yen and the Swiss franc. It is worth noting that even in the occurrence of a brief shutdown in the US economy, that would be enough to postpone any expectations of QE tapering, adding further selling pressure to the USD. The research team at BTMU observed, “if the market is convinced that Japan politics is moving forward with Abenomics then it would not be surprising to see above 100 level with higher Japanese equity prices”.
USD/JPY critical levels
At the moment the pair is retreating 0.46% at 97.82 facing the immediate support at 97.45 (low Aug.29) ahead of 96.81 (low Aug.28) and finally 96.39 (MA200d). On the flip side, a break above 99.14 (high Sep.26) would open the door to 99.18 (high Sep.24) and then 99.67 (high Sep.20).