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28 Jan 2014
USD/JPY sidelined around 102.90
FXstreet.com (Edinburgh) - The USD/JYP is now looking to stabilize in the area of 102.90/103.00 ahead of the Asian open on Wednesday.
USD/JPY all eyes on the Fed
The 2-day FOMC meeting will end up tomorrow with the usual statement and interest rate decision. With a move in rates ruled out, market participants expects the Federal Reserve to act in line with expectations for a $10 billion taper, taking the stimulus package to $65 billion. The 103.00 barrier would thus be under pressure should forecasts materialize, sending spot to hunt last week’s highs around 104.80/85. “Japanese data remains a background driver for the yen. It's all about the Fed taper decision and the Nikkei. We will have to see if the Nikkei can steady around 15,000 given the shakier global equity mood. But an as expected US$10bn Fed taper should encourage a return of buyers on USD/JPY dips, probably under 102”, suggested analysts at Westpac Global Strategy Group.
USD/JPY levels to consider
At the time of writing the pair is up 0.27% at 102.90 with the next resistance at 103.97 (low Jan.22) ahead of 104.15 (200-h MA) and then 104.55 (21-d MA). On the flip side, a break below 102.00 (low Jan.22) would aim for 101.76 (38.2% of 95.81-105.45) and finally 101.62 (low Dec.5).
USD/JPY all eyes on the Fed
The 2-day FOMC meeting will end up tomorrow with the usual statement and interest rate decision. With a move in rates ruled out, market participants expects the Federal Reserve to act in line with expectations for a $10 billion taper, taking the stimulus package to $65 billion. The 103.00 barrier would thus be under pressure should forecasts materialize, sending spot to hunt last week’s highs around 104.80/85. “Japanese data remains a background driver for the yen. It's all about the Fed taper decision and the Nikkei. We will have to see if the Nikkei can steady around 15,000 given the shakier global equity mood. But an as expected US$10bn Fed taper should encourage a return of buyers on USD/JPY dips, probably under 102”, suggested analysts at Westpac Global Strategy Group.
USD/JPY levels to consider
At the time of writing the pair is up 0.27% at 102.90 with the next resistance at 103.97 (low Jan.22) ahead of 104.15 (200-h MA) and then 104.55 (21-d MA). On the flip side, a break below 102.00 (low Jan.22) would aim for 101.76 (38.2% of 95.81-105.45) and finally 101.62 (low Dec.5).