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4 Apr 2013
Forex: USD/JPY prints new high at 95.75 on US session
FXstreet.com (Barcelona) - After the rally in reaction to the BoJ aggressive decision, the USD/JPY became quite stable around 95.50 throughout the European session. Now, as the US session unfolds, the pair has printed a new high at 95.75 and extended the daily range to 300 pips.
The US initial jobless claims rose from 357K to 385K, instead of easing to 350K. Continuing claims also disappointed the market by coming in at 3.063M instead of the 3.050K consensus, with the previous figure being revised higher from 3.050K to 3.071K. The March Challenger Job Cuts report eased from 55.356K to 49.255K, but still higher than December and January data, at 32.6K and 40.K, respectively.
In regard to the BoJ aggressive action in order to target 2% inflation, BTMU analyst Derek Halpenny said that with the BOJ now buying out to 40 years there is a high risk that the financial markets will start to conclude that the BOJ is moving toward debt monetization. Kit Juckes, Global Head of Currency Strategy at Societe Generale, is surprised with what looks like a 100% increase in bond boosting, instead of the expected 50%. “This is the kind of aggressive easing we are used to seeing from the Fed and would just love to see more of from the ECB...”, he continued, but not sure if the BoJ will manage to deliver the 2% inflation on 2 year time scale.
“Fresh extension higher will be looking for test of 96.00 and key barrier at 96.70, 12 Mar peak and highest level seen since Aug 2009”, wrote Windsor Brokers analyst Slobodan Drvenica, suggesting a corrective pullback preceding fresh rally based on overextended hourly studies, with any stronger dips to be ideally contained above 94.50/40, Fib 38.2% of overnight’s rally and previous highs of 28/29 Mar, to keep immediate bulls intact.
The US initial jobless claims rose from 357K to 385K, instead of easing to 350K. Continuing claims also disappointed the market by coming in at 3.063M instead of the 3.050K consensus, with the previous figure being revised higher from 3.050K to 3.071K. The March Challenger Job Cuts report eased from 55.356K to 49.255K, but still higher than December and January data, at 32.6K and 40.K, respectively.
In regard to the BoJ aggressive action in order to target 2% inflation, BTMU analyst Derek Halpenny said that with the BOJ now buying out to 40 years there is a high risk that the financial markets will start to conclude that the BOJ is moving toward debt monetization. Kit Juckes, Global Head of Currency Strategy at Societe Generale, is surprised with what looks like a 100% increase in bond boosting, instead of the expected 50%. “This is the kind of aggressive easing we are used to seeing from the Fed and would just love to see more of from the ECB...”, he continued, but not sure if the BoJ will manage to deliver the 2% inflation on 2 year time scale.
“Fresh extension higher will be looking for test of 96.00 and key barrier at 96.70, 12 Mar peak and highest level seen since Aug 2009”, wrote Windsor Brokers analyst Slobodan Drvenica, suggesting a corrective pullback preceding fresh rally based on overextended hourly studies, with any stronger dips to be ideally contained above 94.50/40, Fib 38.2% of overnight’s rally and previous highs of 28/29 Mar, to keep immediate bulls intact.