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21 Oct 2013
Flash: USD/JPY looking to test 200-day MA 97.15 - BBH
FXstreet.com (Barcelona) - According to Marc Chandler, Head of FX at Brown Brothers Harriman, the USD/JPY looks poised to trade lower this week, as the pair prints a third lower high against the yen since peaking in late-May near JPY103.75.
Key Quotes
"Follow through selling was seen the next day and the greenback finished the week at six-day lows. The market appears to be set to re-test the 200-day moving average that had been successfully tested on the October 7-9. It is found near JPY97.15."
"Below there, the JPY96.50-70 band is reasonable near-term objective. Lending credence to this negative dollar-yen view, the US interest rate premium over Japan has slipped below 200 bp to its lowest level in nearly three weeks."
Key Quotes
"Follow through selling was seen the next day and the greenback finished the week at six-day lows. The market appears to be set to re-test the 200-day moving average that had been successfully tested on the October 7-9. It is found near JPY97.15."
"Below there, the JPY96.50-70 band is reasonable near-term objective. Lending credence to this negative dollar-yen view, the US interest rate premium over Japan has slipped below 200 bp to its lowest level in nearly three weeks."