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11 Mar 2015
USD/JPY: Headwinds keeping a lid on the major below 122.00
FXStreet (Guatemala) - USD/JPY is currently trading at 121.41 with a high of 121.63 and a low of 120.84.
USD/JPY is hanging in there, so to speak, with plenty of resistance in the higher part of the channel. The headwinds are coming in from through the 122 handle and have escalated on a long squeeze this week down to current levels and the lows. We are in corporate hedging territory which will keep a lid on the pair for a limited time and bulls wait to ambush again for a possible push to 122.30 and the 15 year downward trend resistance.
Meanwhile, analysts at Rabobank explained that whispers that the Federal Reserve could consider a rate hike as soon as June have been on the increase since last week’s strong US February employment report. "US economic data so far this week has been sparse with January wholesale trade and February NFIB small business optimism both disappointing. However, an article by the WSJ’s Chief Economics Correspondent Hilsenrath suggesting that a June move was in the running has fanned rate hike speculation further." Specifically associated to the major, they said, "Stock markets are again mostly lower across the board with the clear exception being the Nikkei 225 which is being supported by the buoyant tone of USD/JPY."
USD/JPY is hanging in there, so to speak, with plenty of resistance in the higher part of the channel. The headwinds are coming in from through the 122 handle and have escalated on a long squeeze this week down to current levels and the lows. We are in corporate hedging territory which will keep a lid on the pair for a limited time and bulls wait to ambush again for a possible push to 122.30 and the 15 year downward trend resistance.
Meanwhile, analysts at Rabobank explained that whispers that the Federal Reserve could consider a rate hike as soon as June have been on the increase since last week’s strong US February employment report. "US economic data so far this week has been sparse with January wholesale trade and February NFIB small business optimism both disappointing. However, an article by the WSJ’s Chief Economics Correspondent Hilsenrath suggesting that a June move was in the running has fanned rate hike speculation further." Specifically associated to the major, they said, "Stock markets are again mostly lower across the board with the clear exception being the Nikkei 225 which is being supported by the buoyant tone of USD/JPY."