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24 Feb 2015
USD/JPY strengthens above 119.00, but within range context
FXStreet (Bali) - The US Dollar is strengthening across the board after an algos-led NZD sell-off, driven by low RBNZ inflation expectations, in what appears to be an over-reaction.
USD/JPY has benefited from recent USD strength, bouncing off 118.75 support late in US, extending its bounce all the way up to 119.10, where selling has intensified ahead of 119.20/30, where a cluster of offers is expected. Yellen's testimony on Tuesday is going to be the main driver for the pair.
Jim Langlands, Founder at FXCharts, notes: "I still prefer to play it from the long side although Japanese exporters are said to be selling rallies into the month-end and may prevent further gains in the short term, although there are US$4.4 bio of 120.00 option strikes expiring this week and these could act as a magnet in coming sessions. Technically there is little change. The 100/200 HMA’s are converging at 119.00 and in the short term we seem unlikely to travel too far from here."
USD/JPY has benefited from recent USD strength, bouncing off 118.75 support late in US, extending its bounce all the way up to 119.10, where selling has intensified ahead of 119.20/30, where a cluster of offers is expected. Yellen's testimony on Tuesday is going to be the main driver for the pair.
Jim Langlands, Founder at FXCharts, notes: "I still prefer to play it from the long side although Japanese exporters are said to be selling rallies into the month-end and may prevent further gains in the short term, although there are US$4.4 bio of 120.00 option strikes expiring this week and these could act as a magnet in coming sessions. Technically there is little change. The 100/200 HMA’s are converging at 119.00 and in the short term we seem unlikely to travel too far from here."