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13 Sep 2013
USD/JPY sidelined around 99.70
FXstreet.com (Edinburgh) -The better mood surrounding the greenback is keeping the bid tone in the USD/JPY on Friday, ahead of the US retail sales due later.
USD/JPY focus on FOMC
The pair eased some ground from levels beyond the triple-digit resistance although pullbacks were well contained around 99.00 the figure, as risk trends and the sales tax hike in the Japanese economy continue to drive the short-term price action of the JPY. Ahead in the day, US retail sales will be in the limelight, with consensus expecting a monthly expansion of 0.4% of the headline sales. In light of next week’s FOMC meeting, Currency Analyst Lee Hardman at BTMU commented, “Our base case scenario is that the majority on the FOMC will remain comfortable with view that QE could be brought to an end by the middle of next year with the first rate hike then following in 2015… With the US dollar already trading weaker than implied by relative yield spreads heading into the meeting it will be difficult for recent US dollar weakness to extend much further following the FOMC meeting”.
USD/JPY levels to watch
The pair is now up 0.12% at 99.65 facing the next hurdle at 99.98 (high Sep.13) followed by 100.62 (high Sep.11) and finally 101.05 (high Jul.22). On the downside, a violation of 99.04 (MA100d) would aim for 98.78 (MA21d) and then 98.27 (low Sep.2).
USD/JPY focus on FOMC
The pair eased some ground from levels beyond the triple-digit resistance although pullbacks were well contained around 99.00 the figure, as risk trends and the sales tax hike in the Japanese economy continue to drive the short-term price action of the JPY. Ahead in the day, US retail sales will be in the limelight, with consensus expecting a monthly expansion of 0.4% of the headline sales. In light of next week’s FOMC meeting, Currency Analyst Lee Hardman at BTMU commented, “Our base case scenario is that the majority on the FOMC will remain comfortable with view that QE could be brought to an end by the middle of next year with the first rate hike then following in 2015… With the US dollar already trading weaker than implied by relative yield spreads heading into the meeting it will be difficult for recent US dollar weakness to extend much further following the FOMC meeting”.
USD/JPY levels to watch
The pair is now up 0.12% at 99.65 facing the next hurdle at 99.98 (high Sep.13) followed by 100.62 (high Sep.11) and finally 101.05 (high Jul.22). On the downside, a violation of 99.04 (MA100d) would aim for 98.78 (MA21d) and then 98.27 (low Sep.2).