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23 May 2013
USD/JPY continues to unwind and volatile
FXstreet.com (Barcelona) - The USD/JPY has continued its unwinding with the pair hovering over 101.00 recording 100.83 the session low.
Volatility is setting in, aka ‘noise’, with the Nikkei setting off flurries of selling in the pair, triggering stops and taking out very large orders with speculative trading exuberating the pressures to the down side.
So long as the pair can hold above 99.80, investors are likely to keep in mind the fundamentals supporting a weaker JPY and original targets for 105.00. With a clearer picture unveiled in yesterdays testimony from Bernanke, the market may settle down again, although anticipating a data sensitive market around US labour performances. Such data will be effecting the performance in USD/JPY while Bernanke also spoke of supporting the BoJ reforms in the Japanese economy, which underpin a weaker JPY.
Volatility is setting in, aka ‘noise’, with the Nikkei setting off flurries of selling in the pair, triggering stops and taking out very large orders with speculative trading exuberating the pressures to the down side.
So long as the pair can hold above 99.80, investors are likely to keep in mind the fundamentals supporting a weaker JPY and original targets for 105.00. With a clearer picture unveiled in yesterdays testimony from Bernanke, the market may settle down again, although anticipating a data sensitive market around US labour performances. Such data will be effecting the performance in USD/JPY while Bernanke also spoke of supporting the BoJ reforms in the Japanese economy, which underpin a weaker JPY.