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27 Feb 2013
Forex: USD/JPY pressured below 92.00
The USD/JPY has been under pressure this week. Monday's plunge from 94.00 area only found a low at 90.91, and no real bounce was seen yesterday: the pair dropped to as low as 91.14. Despite an upside attempt in early Asian hours, the market returned rapidly to below 92.00 and is currently quoting around 91.75.
Kuroda may really be the “soon to be” BoJ Governor. Japan’s opposition party (DPJ) already announced their support. Since investors have already priced in expectations about him, not much volatility happened on this headline.
“Although it is a long-term ambition of the Abe administration to revive the domestic nuclear power industry, there seems little hope of imminent change on that front”, wrote UBS analyst Gareth Berry. “This condemns the trade balance to spending a prolonged period in deficit territory, likely keeping the corporate community in net yen-selling mode for a long time to come”, he added, pointing to support at 90.62 and 88.78, while resistance is at 93.28 ahead of 94.77.
Kuroda may really be the “soon to be” BoJ Governor. Japan’s opposition party (DPJ) already announced their support. Since investors have already priced in expectations about him, not much volatility happened on this headline.
“Although it is a long-term ambition of the Abe administration to revive the domestic nuclear power industry, there seems little hope of imminent change on that front”, wrote UBS analyst Gareth Berry. “This condemns the trade balance to spending a prolonged period in deficit territory, likely keeping the corporate community in net yen-selling mode for a long time to come”, he added, pointing to support at 90.62 and 88.78, while resistance is at 93.28 ahead of 94.77.