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4 Dec 2014
USD/JPY longs back in for another shot at 120.00
FXStreet (Guatemala) - USD/JPY is trading at 119.84, up 0.04% on the day, having posted a daily high at 120.26 and low at 119.34.
USD/JPY has been up through the 120 handle and scored highs when the ECB made comments with regards to QE in the opening of the statement which markets took as a sell signal in EUR/USD and was the catalyst for flows into the greenback. This was reversed when sellers took the opportunity through the psychological handle and when markets reversed their positions in EUR/USD as a result of a less dovish and indecisive ECB. However, demand came in again and longs were back in for more down at 119.35 and we rallied up to current levels.
USD/JPY at these levels are likely to attract corporate interest still and hedging structures while buy stops on further rallies (unlikely to emerge) could instigate a spike and squeeze for higher grounds through 120.20. Levels to watch there are now 120.08 (Daily Classic R1), 120.26 (High), 120.36 (Daily Classic R2) and 120.78 (Weekly Classic R3).
From a fundamental basis, markets will be very nervous to be too long leading into tomorrow's Nonfarm payrolls data incase of any surprises one way or the other ahead of close for the week. The pair has moved back into positive territory and the market remains weighed on the long side towards the US close.
USD/JPY has been up through the 120 handle and scored highs when the ECB made comments with regards to QE in the opening of the statement which markets took as a sell signal in EUR/USD and was the catalyst for flows into the greenback. This was reversed when sellers took the opportunity through the psychological handle and when markets reversed their positions in EUR/USD as a result of a less dovish and indecisive ECB. However, demand came in again and longs were back in for more down at 119.35 and we rallied up to current levels.
USD/JPY at these levels are likely to attract corporate interest still and hedging structures while buy stops on further rallies (unlikely to emerge) could instigate a spike and squeeze for higher grounds through 120.20. Levels to watch there are now 120.08 (Daily Classic R1), 120.26 (High), 120.36 (Daily Classic R2) and 120.78 (Weekly Classic R3).
From a fundamental basis, markets will be very nervous to be too long leading into tomorrow's Nonfarm payrolls data incase of any surprises one way or the other ahead of close for the week. The pair has moved back into positive territory and the market remains weighed on the long side towards the US close.