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8 Apr 2013
Forex Flash: USD/JPY to remain bid; 100.00/101.50 eyed - RBS
FXstreet.com (Barcelona) - After the USD/JPY rallied despite the disappointing US payrolls report on Friday, this suggests, inn view of Greg Gibbs, FX strategist at RBS, that "the market is still trying to chase sales of JPY post the BoJ."
Greg notes: "Price action suggests the USD/JPY will remain bid in the near term. However we might expect it to consolidate the sharp rally over recent sessions below 100 to 101.50. This should prove a significant psychological barrier."
According to the analyst, "the levels just prior to the payrolls are now a key support for the USD/JPY. It hit a low at around 95.77 just as the payrolls were released, but was consolidating mostly around 96.00/40 in the run up to the payrolls." Greg tips to scale into longs "down to 96.40, and stop out below 95.75, with the first buy order might be left at 97.85."
Greg notes: "Price action suggests the USD/JPY will remain bid in the near term. However we might expect it to consolidate the sharp rally over recent sessions below 100 to 101.50. This should prove a significant psychological barrier."
According to the analyst, "the levels just prior to the payrolls are now a key support for the USD/JPY. It hit a low at around 95.77 just as the payrolls were released, but was consolidating mostly around 96.00/40 in the run up to the payrolls." Greg tips to scale into longs "down to 96.40, and stop out below 95.75, with the first buy order might be left at 97.85."