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14 Aug 2015
USD/JPY: consolidating China and Yuan impacts
FXStreet (Guatemala) - USD/JPY is currently trading at 124.42 with a high of 124.45 and low of 124.39.
USD/JPY has been trading just shy of a 40 pip range overnight and is subdued in early Asia also as markets digest the recent havoc in the PBoC devaluing the Yuan reference rate by 4.66% in total over three consecutive cuts. The Yen benefited as a safe haven but more on the basis that investors began to discount a Fed hike as soon as next month on the basis of the PBoC recent actions.
Today offered the US dollar some support in the calendar with retails sales beating expectations, and this comes before next week's CPI data and FOMC minutes which both are crucial for the subsequent direction of price.
USD/JPY consolidation above key 124 level
The June peak at 125.86 would be the next target through the recent highs on the 125 handle, ahead of the May 1997 high at 127.48. "We will retain our weekly bullish forecast while the 123.01 late July low underpins. Above it the accelerated uptrend line can be seen at 124.49," said Karen Jones, chief analyst at Commerzbank.
USD/JPY has been trading just shy of a 40 pip range overnight and is subdued in early Asia also as markets digest the recent havoc in the PBoC devaluing the Yuan reference rate by 4.66% in total over three consecutive cuts. The Yen benefited as a safe haven but more on the basis that investors began to discount a Fed hike as soon as next month on the basis of the PBoC recent actions.
Today offered the US dollar some support in the calendar with retails sales beating expectations, and this comes before next week's CPI data and FOMC minutes which both are crucial for the subsequent direction of price.
USD/JPY consolidation above key 124 level
The June peak at 125.86 would be the next target through the recent highs on the 125 handle, ahead of the May 1997 high at 127.48. "We will retain our weekly bullish forecast while the 123.01 late July low underpins. Above it the accelerated uptrend line can be seen at 124.49," said Karen Jones, chief analyst at Commerzbank.