Wednesday, November 4, 2015

USD/JPY bulls taking charge on positive equities

FXStreet (Guatemala) - USD/JPY is currently trading at 121.22 with a high of 121.31 and a low of 121.03.

USD/JPY is starting to break higher as the greenback gathers pace on fundamentals that the US continues to hold a positive arena for investing with Wall Street closing positively and risk moves into Tokyo equities also supporting a higher USD/JPY.

The data is light in Asia today, but the US holds a good deal of potential for catalyst for the major, with Fed Yellen, Dudley and Stanley Fisher all making an appearance across the wires while the ADP report will be closing monitored for an indication of how positive, or not, the Nonfarm Payrolls might be as a prelude to the Fed's December decision.

Eric Theoret, CFA, CMT FX Strategist at Scotiabank explained that USD/JPY risk is centered on the outlook for relative policy as market participants consider the prospect of a normalizing Fed in contrast to an accommodative BoJ and offered a wider technical outlook here.

USD/JPY nearer term levels

Technically, There is a bullish case building once again although we remain in the familiar ranges. The break out points stay with 121.50 after the 200 DMA at 121.07 has been fully taken out with daily closes with 122.00 the next big resistance to break. To the downside, 118.00 and 116.00 remain as key targets.
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