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5 Sep 2014
USD/JPY: Up-move fades, market uncommitted ahead of US jobs
FXStreet (Bali) - USD/JPY is the main story in Asia, having broken 105.50 to post a new 6-year high at 105.72 before sellers returned to the rate back down towards 105.23.
Importer's demand (gotobi), coupled with leveraged names, initially pushed the rate into new highs, but the market quickly faded the move ahead of the US NFP. There is some substantial KO option interest at 106.00 being protected.
According to Jim Langlands, Founder at FXCharts: "A strong NFP would see the important 105.43 (2 Jan high & 61.8% of 124.13/75.56) re-taken, beyond which will see the move that we have been waiting for, towards 106.00 and then to the 200 month MA at 106.45. On the downside, back below 105.00 would quickly test the 104.70 support should the NFP come in at below 200K – Unlikely I think..."
Importer's demand (gotobi), coupled with leveraged names, initially pushed the rate into new highs, but the market quickly faded the move ahead of the US NFP. There is some substantial KO option interest at 106.00 being protected.
According to Jim Langlands, Founder at FXCharts: "A strong NFP would see the important 105.43 (2 Jan high & 61.8% of 124.13/75.56) re-taken, beyond which will see the move that we have been waiting for, towards 106.00 and then to the 200 month MA at 106.45. On the downside, back below 105.00 would quickly test the 104.70 support should the NFP come in at below 200K – Unlikely I think..."