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Recent high signals the resumption of a greater uptrend for USD/JPY - MP

Dean Popplewell, Director of Currency Analysis and Research at MarketPulse views the recent news of postponing the sales tax and snap elections as the reason behind the USD/JPY climb.

Key Quotes

“USD/JPY (¥116.00) has been aided in its cause following news that a planned sales tax may be postponed and snap elections called in Japan.”

“The U.S dollars meteoric rise is expected for a breather soon, nevertheless, the dollar’s trend remains your friend with deeper gains beyond ¥116 leading to more short-term erratic moves.”

“The technicians will argue that a daily close above ¥115.95 will be required to resume the currency pair’s short-term momentum. This current move has obviously negated the damage seen post-payrolls, and signals the markets resumption of the greater uptrend towards ¥118.00.”

“Expect the crosses such as GBP/JPY (£183.80) and EUR/JPY (€143.85) to aid in the yen’s demise.”

EUR/JPY eyes 2014 highs

EUR/JPY advanced sharply Tuesday underpinned by a new wave of JPY selling amid speculation that PM Abe may delay the next leg of the planned sales tax increase and call for an early election.
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