Back
16 Jan 2015
USD/JPY: Stops below 116.00 tripped
FXStreet (Bali) - USD/JPY has broken through 116.00, setting a new session low of 115.87 before rebounding to 116.22, in what appears to be a stop-run move, which follows a topside failure of 117.00 earlier in NA.
The Japanese Yen has been benefiting from risk-off flows even since the black swan event courtesy of the SNB removing the Eur/Chf floor. With market dynamics about to experience a significant change, which would probably lead to a period of major uncertainty in the market, the Yen is likely to do pretty well under such environment, with selling pressure on stocks to underpin JPYs.
According to Jim Langlands, Founder at FXCharts: "There is no real change in view and we retain the bias of further Yen strength in the days ahead and continue to prefer to sell rallies in the dollar. Below the weeks low at 116.08 and then 116.00, where large GPIF bids are rumoured to lie, would then target the 16 Dec low of 115.55. On the topside, 117.00 will now act as minor resistance ahead of 117.25 and 117.50. Above there could revisit 118.00 although this looks doubtful today"
The Japanese Yen has been benefiting from risk-off flows even since the black swan event courtesy of the SNB removing the Eur/Chf floor. With market dynamics about to experience a significant change, which would probably lead to a period of major uncertainty in the market, the Yen is likely to do pretty well under such environment, with selling pressure on stocks to underpin JPYs.
According to Jim Langlands, Founder at FXCharts: "There is no real change in view and we retain the bias of further Yen strength in the days ahead and continue to prefer to sell rallies in the dollar. Below the weeks low at 116.08 and then 116.00, where large GPIF bids are rumoured to lie, would then target the 16 Dec low of 115.55. On the topside, 117.00 will now act as minor resistance ahead of 117.25 and 117.50. Above there could revisit 118.00 although this looks doubtful today"