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17 Sep 2013
USD/JPY is in a tight range ahead of FOMC
FXstreet.com (London) - USD/JPY is in a tight range ahead of the FOMC tomorrow, trading between 99.00 and 99.40 and slightly bid.
Brian Daingerfield at RBS Strategy said short USD/JPY is likely the pair with the highest beta to US interest rates, which we expect will grind lower in the aftermath of the FOMC meeting. Then, ahead of tomorrow’s Fed meeting, Trevor Greetham, Director of Asset Allocation at Fidelity Worldwide Investment, shares his views on tapering, “The reaction of the US dollar to the tapering process will determine the optimal portfolio strategy. If the approach of higher US rates leads to a period of renewed dollar strength, as we expect, then stocks in the US and Japan stand to benefit as lower inflation keeps monetary policy loose in America while yen weakness boosts profit margins for Japanese exporters. A more gradual than expected tapering process could see the dollar weaken to the benefit of commodities and the emerging markets, areas that have suffered most from a repatriation of US capital in recent months”.
USD/JPY levels
The 20 DMA is 98.98, the 50 DMA is 98.69 and the 200 DMA is 95.73. RSI (14) reads 57.54. Supports are ascending from 98.06, 98.45, 98.64 and 98.98. Spot is currently 99.24 while resistances are 99.56, 99.77, 99.99 and 100.19.
Brian Daingerfield at RBS Strategy said short USD/JPY is likely the pair with the highest beta to US interest rates, which we expect will grind lower in the aftermath of the FOMC meeting. Then, ahead of tomorrow’s Fed meeting, Trevor Greetham, Director of Asset Allocation at Fidelity Worldwide Investment, shares his views on tapering, “The reaction of the US dollar to the tapering process will determine the optimal portfolio strategy. If the approach of higher US rates leads to a period of renewed dollar strength, as we expect, then stocks in the US and Japan stand to benefit as lower inflation keeps monetary policy loose in America while yen weakness boosts profit margins for Japanese exporters. A more gradual than expected tapering process could see the dollar weaken to the benefit of commodities and the emerging markets, areas that have suffered most from a repatriation of US capital in recent months”.
USD/JPY levels
The 20 DMA is 98.98, the 50 DMA is 98.69 and the 200 DMA is 95.73. RSI (14) reads 57.54. Supports are ascending from 98.06, 98.45, 98.64 and 98.98. Spot is currently 99.24 while resistances are 99.56, 99.77, 99.99 and 100.19.