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12 Mar 2014
USD/JPY dips to lows near 102.70
FXStreet (Edinburgh) - The risk aversion continues to prevail on markets on Wednesday, now dragging the USD/JPY to the 102.75/70 area.
USD/JPY in weekly lows
The safe haven inflows intensified as of late due to increasing concerns over the Crimean peninsula and the upcoming referendum (Sunday), jitters on a slowdown in China and the linked sell-off in copper and iron ore. In the data front, Japanese Consumer Confidence dropped to 38.3 during February, missing estimates (40.3) and down from January’s 40.5. According to strategists at UBS, “Given consumers are losing faith, the prospect of establishing a self-sustaining virtuous cycle between inflation expectations, actual inflation and consumption now seems rather remote… So there is every reason to believe that the path of inflation is likely to diverge from the trajectory implied by the Bank of Japan’s 2% inflation target”.
USD/JPY levels to watch
As of writing the pair is losing 0.27% at 102.74 and a breach of 102.64 (daily cloud base) would target 102.61 (low Mar.10) and then 102.49 (Tenkan Sen). On the upside, the initial hurdle aligns at 103.43 (high Mar.12) followed by 103.77 (high Mar.7) and finally 103.97 (low Jan.22).
USD/JPY in weekly lows
The safe haven inflows intensified as of late due to increasing concerns over the Crimean peninsula and the upcoming referendum (Sunday), jitters on a slowdown in China and the linked sell-off in copper and iron ore. In the data front, Japanese Consumer Confidence dropped to 38.3 during February, missing estimates (40.3) and down from January’s 40.5. According to strategists at UBS, “Given consumers are losing faith, the prospect of establishing a self-sustaining virtuous cycle between inflation expectations, actual inflation and consumption now seems rather remote… So there is every reason to believe that the path of inflation is likely to diverge from the trajectory implied by the Bank of Japan’s 2% inflation target”.
USD/JPY levels to watch
As of writing the pair is losing 0.27% at 102.74 and a breach of 102.64 (daily cloud base) would target 102.61 (low Mar.10) and then 102.49 (Tenkan Sen). On the upside, the initial hurdle aligns at 103.43 (high Mar.12) followed by 103.77 (high Mar.7) and finally 103.97 (low Jan.22).