USD/JPY Spikes Towards 113.30/35 Resistance

USD/JPY Spikes Towards 113.30/35 Resistance

25 March 2016, 05:29
Roberto Jacobs

USD/JPY Spikes Towards 113.30/35 Resistance

USD/JPY has seen strong buying interest in the first hour of Tokyo trade, in line with a rising Nikkei 225 , up 0.57% now, one of the few markets that remains open amid thin liquidity on Easter festivities.

USD/JPY testing resistance, Japan CPI out

USD/JPY has seen relentless demand off 112.75 intraday support, with price initially landing at 113.00, although without much selling opposition, it has been a one-way street move from there up towards towards the 113.32 session high, an intraday resistance level as per March 16th reference level. Earlier on the day, Japan published its latest CPI data, with prices still subdued, not showing the progress BOJ would like to see.

USD/JPY expected to appreciate further - Nomura

Yujiro Goto and Yunosuke Ikeda, Global FX Strategist at Nomura, expect renewed strength in USD/JPY in the new fiscal year for 2016/17, calling for 122 by end-2016.

The Strategists note: "Speculative JPY positions are currently at their highest levels of net JPY buying in four years. The unwinding of JPY long positions and gradual JPY selling by domestic investors should restart USD/JPY appreciation, albeit at a slower pace to 122 by end-2016 (previously: 130)."

(Market News Provided by FXstreet)

Share it with friends: