USD/JPY has gained close to 100 points on Tuesday, as the pair trades above the 119 line. Is the pair headed for the 120 level? On the release front, Japanese Average Cash Earnings fell to 0.5% in October, missing expectations. In the US, there are no major releases. Federal Reserve Chair Janet Yellen will deliver remarks in Washington.
The Japanese yen continues its disappearing act, as the currency is trading above the 119 line. The yen lost ground on a weak report from Average Cash Earnings, which slipped to 0.8% in October, short of the forecast of 0.8%. The softer reading points to less disposable income for the Japanese worker, which means a drop in spending. On Monday, the Moody’s rating agency downgraded Japan’s debt from Aa3 to A1, citing “heightened uncertainty” over the ability of the government to reduce the debt. The downgrade is seen as a response to Prime Minister Abe’s decision to delay a sales tax hike and the negative GDP reading which means that the country is officially in a recession.
USD/JPY posted gains late in the Asian session. The pair continues to move higher in European trade and broke above resistance at 118.89.
118.89 has reverted to a support role as the yen has sustained sharp losses. 117.94 is stronger.
119.93 is a strong resistance line.USD/JPY ratio is pointing to gains in long positions on Tuesday, reversing the direction seen a day earlier. This is consistent with the pair’s movement, as the yen has posted sharp losses. The ratio has a majority of long positions, indicative of trader bias towards the dollar continuing to move to higher ground.
The Japanese yen continues its disappearing act, as the currency is trading above the 119 line. The yen lost ground on a weak report from Average Cash Earnings, which slipped to 0.8% in October, short of the forecast of 0.8%. The softer reading points to less disposable income for the Japanese worker, which means a drop in spending. On Monday, the Moody’s rating agency downgraded Japan’s debt from Aa3 to A1, citing “heightened uncertainty” over the ability of the government to reduce the debt. The downgrade is seen as a response to Prime Minister Abe’s decision to delay a sales tax hike and the negative GDP reading which means that the country is officially in a recession.
USD/JPY posted gains late in the Asian session. The pair continues to move higher in European trade and broke above resistance at 118.89.
118.89 has reverted to a support role as the yen has sustained sharp losses. 117.94 is stronger.
119.93 is a strong resistance line.USD/JPY ratio is pointing to gains in long positions on Tuesday, reversing the direction seen a day earlier. This is consistent with the pair’s movement, as the yen has posted sharp losses. The ratio has a majority of long positions, indicative of trader bias towards the dollar continuing to move to higher ground.
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