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13 Mar 2014
USD/JPY losing the 103 but building demand
FXStreet (Guatemala) - USD/JPY has been holding its form since a white wash that took it from the 103.20 strong hold on yesterdays business and is forming a foothold between 102.60 and 102.80 in Asia, lacking direction.
On Japan, Jane Foley, Senior Currency Strategist explained Japan needs to address its fiscal imbalances. “However the last time the country tried to hike the consumption tax, it found itself plunged into recession. Not only is the consumer facing a large tax hike but there is danger that he is also facing negative real wage changes. This morning’s news that Toyota is giving workers in Japan their biggest pay increase for 21 years is encouraging, but there is still the risk that consumer demand will remain lacklustre post April and this explains why the BoJ have not yet closed the door of the possibility of further policy action”.
USD/JPY Levels
The 20 DMA is 102.37, 50 DMA is 103.00 and the 200 DMA is 100.24. RSI (14) reads 45.78. Supports are 102.24, 102.46, 102.59. Spot is 102.73 while resistances are 103.02, 103.13, 103.43, 103.77 and 104.15.
On Japan, Jane Foley, Senior Currency Strategist explained Japan needs to address its fiscal imbalances. “However the last time the country tried to hike the consumption tax, it found itself plunged into recession. Not only is the consumer facing a large tax hike but there is danger that he is also facing negative real wage changes. This morning’s news that Toyota is giving workers in Japan their biggest pay increase for 21 years is encouraging, but there is still the risk that consumer demand will remain lacklustre post April and this explains why the BoJ have not yet closed the door of the possibility of further policy action”.
USD/JPY Levels
The 20 DMA is 102.37, 50 DMA is 103.00 and the 200 DMA is 100.24. RSI (14) reads 45.78. Supports are 102.24, 102.46, 102.59. Spot is 102.73 while resistances are 103.02, 103.13, 103.43, 103.77 and 104.15.