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20 Jun 2013
USD/JPY lower post Initial Jobless Claims.
FXstreet.com (London) - USD/JPY has been gathering itself mostly below the figure of 98.00 pre afternoon US data, oscillating between 97.85 and topping at 98.12.
USD/JPY on US Initial Jobless Claims
Initial Jobless Claims in the US came in higher at 354k against an expectation of 340K and previous 334K and the USD/JPY has moved to the downside.
The pair has broadly recovered from the recent correction in the Yen with the statements form the FOMC overnight. While there were no changes to the current pace of QE, a comment was made as follows: "the downside risks to the outlook for the economy and the labor market as having diminished since the fall”, which sent the market in a ‘risk-off’ flurry again in broad based dollar rally. In all, the statement was a little more upbeat on the economy but showed little concern about inflation, except there being a more upbeat unemployment rate which might bring in a rate hike in a little closer. Next up comes US data in the form of Markit Manufacturing (12.58 GMT), Existing Home sales Change and Philly Fed (14.00GMT).
USD/JPY upside target
Karen Jones, analyst at Commerzbank explained only an unexpected rise above the resistance line at 98.95 would
neutralise their outlook and imply another test of the 103.74 May high. They note that the 20 and 55 day moving averages have crossed over and these offer additional resistance above the market at 99.06/14.
USD/JPY on US Initial Jobless Claims
Initial Jobless Claims in the US came in higher at 354k against an expectation of 340K and previous 334K and the USD/JPY has moved to the downside.
The pair has broadly recovered from the recent correction in the Yen with the statements form the FOMC overnight. While there were no changes to the current pace of QE, a comment was made as follows: "the downside risks to the outlook for the economy and the labor market as having diminished since the fall”, which sent the market in a ‘risk-off’ flurry again in broad based dollar rally. In all, the statement was a little more upbeat on the economy but showed little concern about inflation, except there being a more upbeat unemployment rate which might bring in a rate hike in a little closer. Next up comes US data in the form of Markit Manufacturing (12.58 GMT), Existing Home sales Change and Philly Fed (14.00GMT).
USD/JPY upside target
Karen Jones, analyst at Commerzbank explained only an unexpected rise above the resistance line at 98.95 would
neutralise their outlook and imply another test of the 103.74 May high. They note that the 20 and 55 day moving averages have crossed over and these offer additional resistance above the market at 99.06/14.