JPY finds its largest daily drop against USD in seven weeks; will the greenback stay the course?
Above the 119.0 support mark is a strong position for the USDJPY, and as world events such as the talks over Iran nuclear programme and Greece’s negotiations over bailout funds start to polarize and hit deadlines, it is possible that risk appetite will push investors away from safe havens such as the Japanese yen and gold. And as the FED takes a cautious approach to raising interest rates, the dollar is in a good position to rise further.
STOCK.com Daily Market Review reports on the latest developments from the FED; ‘Comments by Janet Yellen, the Chairwoman of the Federal Reserve, on Friday also continued to support the greenback. In their report, the Commerce Department said that personal spending increased 0.1 percent in February after dropping 0.2% in January. This missed expectations for a 0.3% increase. Meanwhile, personal income rose 0.4% in February, above forecasts for a 0.3% increase and after gaining 0.4% in January. In a separate report, the National Association of Realtors in the U.S. reported that pending home sales rose 3.1 percent in February. This beat expectations of a 0.4% gain. Meanwhile on Friday, Fed Chair Yellen stated that while an interest rate hike would be warranted this year, the Fed might be forced to delay as a result of weakening inflation pressures.’
The STOCK.com Technical Analysis for USDJPY is as follows;
USDJPY - Market participants are waiting closely for the NFP (U.S Non-farm payroll) this Friday, positive results will lead players to add more Long USD positions hence supporting higher readings above 121.00. Meanwhile, the recent movement is expected to moderate as a result of covering as long, as the exchange rates enter the 120.25 - 120.50 resistance level.
In other pairs, EURJPY took a small hit Tuesday morning dropping from 129.954 open to 129.204 in the first hours of trading.
MT4 chart: USDJPY
MT4 chart: EURJPY
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