USD JPY improved among frequent risk on
8/30/2016 11:48:40 AM
The frequent risk-on sentiment helped the USD/JPY pair to bounce-off session low and regain 102.00 handle. The major is now seen developing to its gains to currently trade comfortably above 102.00 handle. The dollar keep on to benefit from increasing Fed rate-hike expectations, which got an additional improvement from Monday's US economic data that showed core PCE price index, the Fed's desired inflation gauge, at 1.6% y-o-y in July inched closer to the central bank's 2% target. In the meantime, the JPY seems to ignore today's release of better-than-expected employment report from Japan. Along with the report, the unemployment rate in July released to 3.0%, the lowest level in 21 years. Market seemed persuaded that BoJ will ease more at its meeting in September and seems to extend support for the USD/JPY major. From current levels, momentum above 102.40 seems to boost the pair towards 103.00 region strong persistence, above which the near-term recovery tendency is expected to get expanded towards 104.00 persistence area with 103.00 round figure mark acting as intermediate persistence. On the other hand, continued weakness back below 102.00 handle, leading to a fell below 101.75, appears to drag the pair back towards 101.25 region. Weakness below 101.25 support is probable to be bought into and from now, should be limited till 100.75 strong support area.
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