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2 Mar 2015
USD/JPY: Bulls have eyes on Feb highs on 120 handle
FXStreet (Guatemala) - USD/JPY is currently trading at 119.88 with a high of 119.96 and a low of 119.62.
USD/JPY is heading for 120 in the full opening of the Asian market, with Tokyo's demand extending the rally on the basis of a strong dollar. Analysts at Brown Brothers Harriman noted and explained that the greenback traded higher against most of the major currencies over the past week, but said this is of no thanks to Yellen's testimony before Congress. Market participants took away from her a reduced chance of a mid-year rate hike.
"We disagree with the interpretation, seeing her comments as 1) playing down lowflation as transitory and 2) seeing the global influence being overall balanced as the decline in oil prices and interest rates offset the dollar's appreciation. We continue to expect the FOMC to drop its "patient" forward guidance at its mid-March meeting."
Technically, there is the first resistance line at 120.13 to get over ahead of the resistance that comes at the February high at 120.48 and before the 121.86 December high. Next level to monitor could be then the 122.45 15 year downtrend which is a very hard barrier.
USD/JPY is heading for 120 in the full opening of the Asian market, with Tokyo's demand extending the rally on the basis of a strong dollar. Analysts at Brown Brothers Harriman noted and explained that the greenback traded higher against most of the major currencies over the past week, but said this is of no thanks to Yellen's testimony before Congress. Market participants took away from her a reduced chance of a mid-year rate hike.
"We disagree with the interpretation, seeing her comments as 1) playing down lowflation as transitory and 2) seeing the global influence being overall balanced as the decline in oil prices and interest rates offset the dollar's appreciation. We continue to expect the FOMC to drop its "patient" forward guidance at its mid-March meeting."
Technically, there is the first resistance line at 120.13 to get over ahead of the resistance that comes at the February high at 120.48 and before the 121.86 December high. Next level to monitor could be then the 122.45 15 year downtrend which is a very hard barrier.