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6 Feb 2013
Forex: USD/JPY down ahead of NY, options better to deal with a pullback
After erasing all gains made during the Asian session, the USD/JPY gave in to downside pressure and eased below the opening price level, of 93.63, coming to as low as 93.30 ahead of the NY session.
Now that messing with the exchange rate is becoming a welcomed topic in Japan, French leaders also want to put an eye on the EUR exchange rate to boost competitiveness. Yesterday, President Hollande said the single currency was too strong and wants to address the issue. Reuters reported that French Finance Minister Moscovici will raise the issue on Monday, with his Eurozone counterparts.
“After reaching the long-term target of the head & shoulders reversal on the weekly chart in the 92/93 zone earlier this week (chart below), the next area above to keep an eye on will be the 94/95 range—a sticky level that marked the highs in Q2 2010”, wrote TD Securities analysts, looking for a pullback from this impressive drive higher, possibly sharp (considering the sizeable speculative net JPY shorts currently outstanding). “So options may be a better way to protect against a move lower”, they added.
Now that messing with the exchange rate is becoming a welcomed topic in Japan, French leaders also want to put an eye on the EUR exchange rate to boost competitiveness. Yesterday, President Hollande said the single currency was too strong and wants to address the issue. Reuters reported that French Finance Minister Moscovici will raise the issue on Monday, with his Eurozone counterparts.
“After reaching the long-term target of the head & shoulders reversal on the weekly chart in the 92/93 zone earlier this week (chart below), the next area above to keep an eye on will be the 94/95 range—a sticky level that marked the highs in Q2 2010”, wrote TD Securities analysts, looking for a pullback from this impressive drive higher, possibly sharp (considering the sizeable speculative net JPY shorts currently outstanding). “So options may be a better way to protect against a move lower”, they added.