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23 Sep 2013
USD/JPY falling below 99.00 as “debt-ceiling” looming
FXstreet.com (Athens)- The USD/JPY is losing some slight ground today, as the “greenback” is generally weakening across the board.
The USD/JPY is heading downwards ahead of a new US political drama of “debt-ceiling”
While Fed’s Saint Louis Fed president Bullard, mentioned that the U.S. central bank might move next month to reduce stimulus spending (i.e. we could guess that the American dollar could move higher today), things are entirely different. First of all, Merkel’s third successive win boosted risk sentiment and therefore the single currency (while the greenback lost ground) but mostly, it seems that the re-emerging debt ceiling issue hurts again the dollar. Funding for the US government’s daily operations expires on 30 Sep, with a government shutdown possible due mostly to bitter divisions within Republicans. In addition, it is plausible that there also harsh divisions between Republicans and Democrats as well, but what traders should keep mostly in mind is that the last time the issues of debt ceiling resurfaced (August,2011) it led markets to a massive risk-aversion environment.
Technical and Strategic Bias on the USD/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “USD/JPY last week sold off to and bounced from the 9747 support line. The market has held its cloud support at 97.64 and should remained under pinned here. Our initial upside target is the 100.62 September high then 101.54/60 July high and the Fibonacci retracement, with a long term Fibonacci retracement offering a 105.48 resistance point above here.”
The USD/JPY is heading downwards ahead of a new US political drama of “debt-ceiling”
While Fed’s Saint Louis Fed president Bullard, mentioned that the U.S. central bank might move next month to reduce stimulus spending (i.e. we could guess that the American dollar could move higher today), things are entirely different. First of all, Merkel’s third successive win boosted risk sentiment and therefore the single currency (while the greenback lost ground) but mostly, it seems that the re-emerging debt ceiling issue hurts again the dollar. Funding for the US government’s daily operations expires on 30 Sep, with a government shutdown possible due mostly to bitter divisions within Republicans. In addition, it is plausible that there also harsh divisions between Republicans and Democrats as well, but what traders should keep mostly in mind is that the last time the issues of debt ceiling resurfaced (August,2011) it led markets to a massive risk-aversion environment.
Technical and Strategic Bias on the USD/JPY
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “USD/JPY last week sold off to and bounced from the 9747 support line. The market has held its cloud support at 97.64 and should remained under pinned here. Our initial upside target is the 100.62 September high then 101.54/60 July high and the Fibonacci retracement, with a long term Fibonacci retracement offering a 105.48 resistance point above here.”