Back
15 Dec 2014
USD/JPY ranges play out ahead of FOMC this week
FXStreet (Guatemala) - USD/JPY is trading at 117.70, down -0.02% on the day, having posted a daily high at 117.75 and low at 117.70.
USD/JPY has continued to the downside and broken overnight lows at the start of this week in the US while risk aversion scrambles to the Yen. US stocks were in the red with the Dow making a low of 17109 and the S&P making a low of 1981.40 before both recovering a little ground ahead of the close. Oil also continues to weigh with WTI marking a low of $55.01 so far in recent moments.
USD/JPY’s fate is likely to now be driven by the FOMC this week, and Abe’s victory had been priced in given the ease of which the Yen has been able to strengthen on the back of what should be a negative factor for Japans domestic currency give Abenomics and subsequent implications for the Yen.
Analysts at TD Securities, with the FOMC ahead, went onto explain, “Our US Rates colleagues are expecting the Fed to remove the “considerable time” reference from forward guidance and replace it with something that still reflects a cautious approach to the timing of the first rate hike next year, but that nonetheless makes it clear that we are getting closer to that inflexion point”.
This, as they analysts at TDS suggest, should be USD-supportive and will keep the USD broadly underpinned. “But it may not be enough to get the big dollar back to the recent peaks against the majors in the near-term”.
USD/JPY has continued to the downside and broken overnight lows at the start of this week in the US while risk aversion scrambles to the Yen. US stocks were in the red with the Dow making a low of 17109 and the S&P making a low of 1981.40 before both recovering a little ground ahead of the close. Oil also continues to weigh with WTI marking a low of $55.01 so far in recent moments.
USD/JPY’s fate is likely to now be driven by the FOMC this week, and Abe’s victory had been priced in given the ease of which the Yen has been able to strengthen on the back of what should be a negative factor for Japans domestic currency give Abenomics and subsequent implications for the Yen.
Analysts at TD Securities, with the FOMC ahead, went onto explain, “Our US Rates colleagues are expecting the Fed to remove the “considerable time” reference from forward guidance and replace it with something that still reflects a cautious approach to the timing of the first rate hike next year, but that nonetheless makes it clear that we are getting closer to that inflexion point”.
This, as they analysts at TDS suggest, should be USD-supportive and will keep the USD broadly underpinned. “But it may not be enough to get the big dollar back to the recent peaks against the majors in the near-term”.