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12 Jun 2013
USD/JPY mixed and pulling back in European session
FXstreet.com (London) - USD/JPY found bids eventually in NY, after tumbling through and below 96.00, it made a low of 95.58 and has climbed stairs back above 96.00 to trade a high of 96.94 in Asia.
USD/JPY was sensitive to rumors of liquidations of hedge fund positioning
The Yen continued to strengthen during the American session amid rumours of a hedge fund in trouble and it was forced to liquidate carry trades, with USD/JPY falling other 130 pips during afternoon trade to fresh lows in the vicinity of 95.60. The Yen has already seen short covering and short entries after the BOJ disappointed the market place the night before yesterday when it failed to address the on going volatility of the JGBs, sparking a strong rally in USD/JPY. Eye’s are now on June 19th FOMC, and speculation has risen that the Fed will begin to taper its QE3 programme at some stage this year, but until that point of such an announcement, the USD/JPY is evermore so at risk to market rumours, sentiment, fundamentals and the tone from central banks.
USD/JPY is technically a neutral play
According to ICN.com, the pair dropped yesterday and touched levels close to support at 95.50 then rebounded to the upside. This is the second attempt of achieving a four-hour closing above the referred to level and failing. They say by examining the technical indicators, they find that Stochastic is showing a positive crossover and an upside move, but Linear Regression Indicators are still negative. They prefer to remain neutral intraday today waiting for new confirmation signals. They suggest that the trading range for today is among key support at 95.00 and key resistance at 98.05 and the general trend over short term basis is to the downside as far as areas of 103.50 remain intact targeting 93.50.
USD/JPY was sensitive to rumors of liquidations of hedge fund positioning
The Yen continued to strengthen during the American session amid rumours of a hedge fund in trouble and it was forced to liquidate carry trades, with USD/JPY falling other 130 pips during afternoon trade to fresh lows in the vicinity of 95.60. The Yen has already seen short covering and short entries after the BOJ disappointed the market place the night before yesterday when it failed to address the on going volatility of the JGBs, sparking a strong rally in USD/JPY. Eye’s are now on June 19th FOMC, and speculation has risen that the Fed will begin to taper its QE3 programme at some stage this year, but until that point of such an announcement, the USD/JPY is evermore so at risk to market rumours, sentiment, fundamentals and the tone from central banks.
USD/JPY is technically a neutral play
According to ICN.com, the pair dropped yesterday and touched levels close to support at 95.50 then rebounded to the upside. This is the second attempt of achieving a four-hour closing above the referred to level and failing. They say by examining the technical indicators, they find that Stochastic is showing a positive crossover and an upside move, but Linear Regression Indicators are still negative. They prefer to remain neutral intraday today waiting for new confirmation signals. They suggest that the trading range for today is among key support at 95.00 and key resistance at 98.05 and the general trend over short term basis is to the downside as far as areas of 103.50 remain intact targeting 93.50.