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15 Dec 2014
USD/JPY bears take control ahead of Tokyo open
FXStreet (Guatemala) - USD/JPY has penetrated the 118 handle and dipped lower for a further attempt at the downside.
This move to the downside may be telling that the markets are more concerned about where to safeguard their exposure in volatile times and a thin opening in Asia amid continued risk occurrences such as the weekend’s OPEC statements from the UAE energy minister, sighting that oil could go down to $40 and they still wouldn't cut supply.
Meanwhile, the Abe victory has done the opposite of what might have been expected to happen. This gives us a sell the fact scenario given that much of the outcome was expected and already priced into the Yen.
However, the upside may well emerge as more traders return to desks on the Tokyo, European and US opens at the start of this week in an in for a cent out for a buck trade off and a huge buy the dip scenario – perhaps?
Further ahead, we are looking towards the US for data events such as CPI and the FOMC. As far as technical levels are concerned, the Yen has fallen so far so fast that really, should the continuation of a reversal take full shape, there isn’t much in the way of the 55 day moving average at 113.04 and the psychological handles on the way there. 117.30/20 is key for the bears as Dec low ahead of 116.80 ahead of 115.40 as daily lows before 113.80 as another key support.
This move to the downside may be telling that the markets are more concerned about where to safeguard their exposure in volatile times and a thin opening in Asia amid continued risk occurrences such as the weekend’s OPEC statements from the UAE energy minister, sighting that oil could go down to $40 and they still wouldn't cut supply.
Meanwhile, the Abe victory has done the opposite of what might have been expected to happen. This gives us a sell the fact scenario given that much of the outcome was expected and already priced into the Yen.
However, the upside may well emerge as more traders return to desks on the Tokyo, European and US opens at the start of this week in an in for a cent out for a buck trade off and a huge buy the dip scenario – perhaps?
Further ahead, we are looking towards the US for data events such as CPI and the FOMC. As far as technical levels are concerned, the Yen has fallen so far so fast that really, should the continuation of a reversal take full shape, there isn’t much in the way of the 55 day moving average at 113.04 and the psychological handles on the way there. 117.30/20 is key for the bears as Dec low ahead of 116.80 ahead of 115.40 as daily lows before 113.80 as another key support.