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15 Aug 2013
USD/JPY spikes to 98.30; dip-buyers fail to hold 98.00
FXstreet.com (Barcelona) - USD/JPY just had a 30+ pips spike following recovery off 97.75 lows, with price reaching a session high at 98.30, which coincides with last U.S. session high.
The latest sell-off in the Yen relates, according to market sources, relates to importer demand, also known as Gotobi flows. The flow has somehow surprised the market with a flash move.
There has been some headlines crossing the wires in the last few minutes, saying 'the Japanese government has upgraded the view on the jobs market', while on its monthly report, the Japanese government said 'deflation is ending', offering the most optimistic view in almost 4 years. Lastly, Japan Chief Cabinet Sec Suga said 'it is not true to the reports circulating around about PM Abe having instructed a corporate tax cut.'
From a technical stance, the rapid ascension on the USD/JPU, which has been followed by a decline in the blink of an eye, has seen bids re-emerge ahead 98.00, which is trying to maintain with no much success. Note, since the rise has been presumably led by importers demand, well-informed participants may fake the move higher, risking a continuation of the lower bias.
The latest sell-off in the Yen relates, according to market sources, relates to importer demand, also known as Gotobi flows. The flow has somehow surprised the market with a flash move.
There has been some headlines crossing the wires in the last few minutes, saying 'the Japanese government has upgraded the view on the jobs market', while on its monthly report, the Japanese government said 'deflation is ending', offering the most optimistic view in almost 4 years. Lastly, Japan Chief Cabinet Sec Suga said 'it is not true to the reports circulating around about PM Abe having instructed a corporate tax cut.'
From a technical stance, the rapid ascension on the USD/JPU, which has been followed by a decline in the blink of an eye, has seen bids re-emerge ahead 98.00, which is trying to maintain with no much success. Note, since the rise has been presumably led by importers demand, well-informed participants may fake the move higher, risking a continuation of the lower bias.