USD/JPY has extended gains to move above the European high. A better than expected Q4 GDP release has fueled expectations of a hawkish Fed tone at today's US FOMC policy announcement. US Yield have pushed higher, underscoring the widening differentials between their Japanese counterparts.
USD/JPY will target the Asian high at 121.74 and standing offers from 121.80 and into the 122.00 region. Speculative account demand and macro account activity has increased, with yields once again overwhelming any JPY nervousness. Sentiment is little mixed now, with the recent break down in prices turning the daily picture bearish.
As a result, technical based accounts are looking to sell into strength, with 121.80 as the first point of interest. The latest round of buying has come from US exporters and Swiss private banks following the good interest from Japanese real money in the European morning.
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