20 Jul 2013
Session Recap: Yen continues with is decline just ahead of elections weekend
FXstreet.com (San Francisco) - The Japanese Yen has continued in Friday with its downtrend across the market as experts are hoping about a Abe victory in the weekend Upper House's election. Market is assuming that an Abe victory, widely expected, will mean more Abenomics with his three arrows. In addition, in a latest attempt to catch voters, BoJ's Kuroda said that the BoJ will strongly pursue its qualitative quantitative policies.
So, more QE means more Japanese weakness. Then the market is selling yens. Meanwhile, the USD/JPY has climbed almost 200 pips from Tuesday's lows at 98.90 and it closed the week at 100.60 just after peaking to 100.85. As FXstreet.com's chief analyst asked in a recent report, "Can weekend elections grant new highs beyond 103.70?"
Bednarik commented that "so far nothing indicates that, according to daily chart, the time for USD/JPY upside has come. "Latest June kneejerk down to 93.70 was barely corrective as the level represents the 38.2% retracement of the October/May bullish run. But the recovery stalled around a shorter Fibonacci retracement area, 78.6% retracement of its latest fall at 101.50, and the pair is having a hard time to hold above the 100.00 level these past couple of weeks."
The FXstreet.com Forecast Poll says that the USD/JPY is set to rise as Dollar future may not be clear, but will likely outperform JPY, expected to continue easing against its American rival.
Regarding other pairs, the GBP/JPY rallied again on Friday with the pair climbing around 160 pips to trade at highs since June 11 at 153.65. The pair has advanced more than 360 pips from Tuesday's lows at 149.75. The EUR/JPY performed its 8th straight positive day with the pair closing at 132.15.
On the other hand, majors traded sideways: EUR/USD priced in between 1.3005 and 1.3135; the GBP/USD advanced another step to close at 1.5260 and the AUD/USD just closed this time below 0.9200.
Main headlines in the American session:
Canada: CPI rose 1.2% YoY in June
IMF: Current market turbulence could continue and deepen
PBOC announces liberalization of lending rates
BOJ’s Kuroda: BOJ will strongly pursue its qualitative and quantitative policies
Wall Street closes mixed on Friday and week; Techs weight
So, more QE means more Japanese weakness. Then the market is selling yens. Meanwhile, the USD/JPY has climbed almost 200 pips from Tuesday's lows at 98.90 and it closed the week at 100.60 just after peaking to 100.85. As FXstreet.com's chief analyst asked in a recent report, "Can weekend elections grant new highs beyond 103.70?"
Bednarik commented that "so far nothing indicates that, according to daily chart, the time for USD/JPY upside has come. "Latest June kneejerk down to 93.70 was barely corrective as the level represents the 38.2% retracement of the October/May bullish run. But the recovery stalled around a shorter Fibonacci retracement area, 78.6% retracement of its latest fall at 101.50, and the pair is having a hard time to hold above the 100.00 level these past couple of weeks."
The FXstreet.com Forecast Poll says that the USD/JPY is set to rise as Dollar future may not be clear, but will likely outperform JPY, expected to continue easing against its American rival.
Regarding other pairs, the GBP/JPY rallied again on Friday with the pair climbing around 160 pips to trade at highs since June 11 at 153.65. The pair has advanced more than 360 pips from Tuesday's lows at 149.75. The EUR/JPY performed its 8th straight positive day with the pair closing at 132.15.
On the other hand, majors traded sideways: EUR/USD priced in between 1.3005 and 1.3135; the GBP/USD advanced another step to close at 1.5260 and the AUD/USD just closed this time below 0.9200.
Main headlines in the American session:
Canada: CPI rose 1.2% YoY in June
IMF: Current market turbulence could continue and deepen
PBOC announces liberalization of lending rates
BOJ’s Kuroda: BOJ will strongly pursue its qualitative and quantitative policies
Wall Street closes mixed on Friday and week; Techs weight