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26 Aug 2013
Flash: What lies ahead of USD/JPY? – Westpac and Commerzbank
FXstreet.com (Edinburgh) -The Japanese yen continues to lose ground against its American counterpart on Monday, lifting the USD/JPY to the area around 98.65/70 after dipping to fresh intraday lows in the vicinity of 98.30 post-US data.
In the opinion of the Westpac Global Strategy Group, “Our inclination is still to buy dips in the pair but near term trade looks contained within a rough 97 – 99.75 range, with the focus in Tokyo on the degree of political courage on the planned sales tax hike. Abe’s tax panel meets this week. Failure to proceed with the long-promised but politically unnerving tax increase would upset investors counting on Abe to make tough decisions”.
In addition, Axel Rudolph, Senior Technical Analyst at Commerzbank, suggested that the pair “has risen above the 98.66 mid-August high and thus has the four month resistance line at 99.55 in its sights. While the current August high at 99.95 caps on a daily New York closing basis, we will maintain our medium term bearish forecast”.
In the opinion of the Westpac Global Strategy Group, “Our inclination is still to buy dips in the pair but near term trade looks contained within a rough 97 – 99.75 range, with the focus in Tokyo on the degree of political courage on the planned sales tax hike. Abe’s tax panel meets this week. Failure to proceed with the long-promised but politically unnerving tax increase would upset investors counting on Abe to make tough decisions”.
In addition, Axel Rudolph, Senior Technical Analyst at Commerzbank, suggested that the pair “has risen above the 98.66 mid-August high and thus has the four month resistance line at 99.55 in its sights. While the current August high at 99.95 caps on a daily New York closing basis, we will maintain our medium term bearish forecast”.