USD/JPY set to soar despite Japan's vigilance
July 2 (Reuters) -USD/JPY looks set to climb through major psychological levels in the days and weeks ahead, despite market concerns about possible action by Japanese authorities to prevent a bigger yen slide.
The dollar was supported by rising U.S. yields and the blowtorch was on low-yielding currencies on Tuesday such as China's yuan and the yen, which was pinned to its lowest since 1986. Japan's finance minister Shunichi Suzuki said on Tuesday authorities were vigilant to sharp currency market moves, but stopped short of giving a clear intervention warning.
USD/JPY in April overcame the 152.60 Fibo, a 38.2% retrace of the major 277.65 to 75.31 (1982 to 2011) drop, a bullish development. There is scope for gains through the 165 and 170 psychological levels, which in turn would unmask the 176.48 Fibo, a 50% retrace of the same 277.65 to 75.31 fall.
The 30- and 60-day correlations between USD/JPY and EUR/JPY are both above +0.60, meaning EUR/JPY will likely head higher also.
For more click on FXBUZ
Monthly Chart: https://tmsnrt.rs/45MwBje
Correlation Chart: https://tmsnrt.rs/4cMq4HU
(Martin Miller is a Reuters market analyst. The views expressed are his own)
</body></html>Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
