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9 Feb 2015
USD/JPY circa 119.00 in early Tokyo
FXStreet (Bali) - USD/JPY had a clean breakout of its 3-week down-channel, closing Friday above the 119.00 round number after an unambiguously strong US NFP, which increases the odds of the first Fed rate lift-off by mid year.
At present, the pair is in a consolidation phase between 118.80 and 119.25, with stops likely above the latter. There is talk of Japanese exporter interest capping rises and potentially a lower fix at 00.50 GMT. Going forward, an upward adjustment in US yields, in line with more optimistic Fed tightening prospects, should support the pair. Nikkei has opened the week up 0.67%, keeping the rate around 119.00.
Jim Langlands, Founder at FXCharts, notes: "Although the daily indicators remain pretty flat, the shorter term charts are looking more positive, and given that we have managed to make a close above the weekly Tenkan (118.65) for the first time this year, there seems a reasonable chance that we could see further gains in the days ahead. Overall, while I suspect that the dollar is building a base for further gains, it still looks to me as though it could take a while and until we see a daily close above the daily cloud top at 119.25, I would not be overly involved as there are more interesting things to look at."
At present, the pair is in a consolidation phase between 118.80 and 119.25, with stops likely above the latter. There is talk of Japanese exporter interest capping rises and potentially a lower fix at 00.50 GMT. Going forward, an upward adjustment in US yields, in line with more optimistic Fed tightening prospects, should support the pair. Nikkei has opened the week up 0.67%, keeping the rate around 119.00.
Jim Langlands, Founder at FXCharts, notes: "Although the daily indicators remain pretty flat, the shorter term charts are looking more positive, and given that we have managed to make a close above the weekly Tenkan (118.65) for the first time this year, there seems a reasonable chance that we could see further gains in the days ahead. Overall, while I suspect that the dollar is building a base for further gains, it still looks to me as though it could take a while and until we see a daily close above the daily cloud top at 119.25, I would not be overly involved as there are more interesting things to look at."