21 Aug 2013
USD/JPY catapults higher as FOMC sparks rally
FXstreet.com (New York) - The USD/JPY foreign exchange rate jumped higher as the FOMC minutes came in, initiating an afternoon rally during US trading Wednesday.
The recent FOMC minutes have expressed dissent amongst Committee members regarding the timing of tapering, although Chairman Bernanke’s tapering timeline was fully supported. Moreover, some members were also concerned about higher rates hampering the current economic recovery.
USD/JPY strategic bias
According to the Technical Analyst Team at ICN.com, “The USD/JPY is trading slightly to the upside but remained limited below Linear Regression Indicator 55 and below 50% correction at 97.65. Therefore, we hold on to our negative expectations on a weekly basis, as we think that the possibility of a downside move is still valid.”
USD/JPY technical levels
The USD/JPY has now recovered the 97.80 mark during US trading, recently peaking in the heights of 97.98, and failing to overcome the 98.00 region. At this juncture the pair is now advancing at a rate of +0.55% above its opening and will test resistances at 97.89, onto 98.13, and finally 98.29, calculates the Danske Research Team.
The recent FOMC minutes have expressed dissent amongst Committee members regarding the timing of tapering, although Chairman Bernanke’s tapering timeline was fully supported. Moreover, some members were also concerned about higher rates hampering the current economic recovery.
USD/JPY strategic bias
According to the Technical Analyst Team at ICN.com, “The USD/JPY is trading slightly to the upside but remained limited below Linear Regression Indicator 55 and below 50% correction at 97.65. Therefore, we hold on to our negative expectations on a weekly basis, as we think that the possibility of a downside move is still valid.”
USD/JPY technical levels
The USD/JPY has now recovered the 97.80 mark during US trading, recently peaking in the heights of 97.98, and failing to overcome the 98.00 region. At this juncture the pair is now advancing at a rate of +0.55% above its opening and will test resistances at 97.89, onto 98.13, and finally 98.29, calculates the Danske Research Team.