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29 Apr 2013
Forex Flash: JPY may continue to digest last weeks BoJ outcome - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank believes that JPY may continue to digest (read: consolidate higher) the slightly outcome from the BOJ meeting last Friday while on the speculative front, CFTC JPY shorts were also pared in the latest week.
At this juncture, he sees that the potential for a further retracement towards the 86.00 neighborhood cannot be ruled out with the 55-day MA (95.55) expected to provide further support. On a related note, he adds that with inherent JPY weakness expected to be reduced in the short term, USD/JPY volatility may instead grow slightly more sensitive to US-centric dollar prospects (i.e., look to US yields). moving to AUD/USD, he remains skeptical of AUD/USD upside going into this weeks busy data calendar, with resistance levels expected at the 55 day MA at 1.0397, while the balance of risks may remain tilted towards 1.0220 if global growth worries continue to mount ahead of the RBA next week. He finishes by writing, “Notably, net speculative CFTC AUD longs were also pared significantly in the latest week.”
At this juncture, he sees that the potential for a further retracement towards the 86.00 neighborhood cannot be ruled out with the 55-day MA (95.55) expected to provide further support. On a related note, he adds that with inherent JPY weakness expected to be reduced in the short term, USD/JPY volatility may instead grow slightly more sensitive to US-centric dollar prospects (i.e., look to US yields). moving to AUD/USD, he remains skeptical of AUD/USD upside going into this weeks busy data calendar, with resistance levels expected at the 55 day MA at 1.0397, while the balance of risks may remain tilted towards 1.0220 if global growth worries continue to mount ahead of the RBA next week. He finishes by writing, “Notably, net speculative CFTC AUD longs were also pared significantly in the latest week.”