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Published On: Mon, Jun 10th, 2013

USD/JPY rebounds, moving back towards ¥100 mark

The US/JPY pair has rebounded since its June 6th low of 95.90, where it became evident that the more bearish traders lacked the weight to pull it down any further. Over the last few days the pair has rallied, today breaking the resistance of 99.00, albeit temporarily. The next big resistance is expected to be at 99.47, before going on to break down the psychological barrier of 100.00. From there on it is expected that the currency will make progress towards 103.50.

The pair has been rather back and forth of late with the Japanese markets being particularly volatile at the moment and the Federal Reserve still to make its decision on the continuation of its quantitative easing program.

Today the Japanese Yen began weakening in the early hours after it emerged that the Gross Domestic Product of Japan had expanded by 1% in the last quarter and current account surplus reaching ¥750bn, more than double the forecasted ¥320bn.

The GBP/USD pair is currently hovering around the 1.5550 area. At the time of writing the pair was resting at 1.5507, 0.05% down from its price at the start of the day. Karen Jones told FXStreet “The GBP/USD last week rallied sharply higher to reach the top of its 3 month up channel and 200-day MA – these are located at 1.5684/1.5704 and are expected to hold the initial test. We suspect that this is the end of the corrective move”.

The AUD/USD has risen by 0.19% to rest at 0.9424, where it has current paused for breath as investors take in the action from the start of the week’s trading in New York.

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About the Author

- Gregory previously worked for a leading financial news publication and is now assistant news editor of financialtrading.com.

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