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1 Nov 2013
USD/JPY soars as US ISM expands at fastest pace since April of 2011
FXstreet.com (Athens) – The USD/JPY got a really solid boost after the US ISM released expanded at fastest pace for approximately 2 ½ years.
USD/JPY skyrockets as ISM expands at the fastest pace since 2011 despite the US government shutdown
The USD/JPY moves sharply higher after the ISM released data showed that the US manufacturing, expanded at its fastest pace since the April as of 2011 and – despite – the 16 day US government’s shutdown. The cross was hovering at 98.46 level prior to the data release, but well after the data came out across the board, it spiked to 98.84 (daily high). Briefly, ISM Manufacturing index released at 56.4 versus 55.0 expected and 56.2 the prior one. Finally, Fed’s Bullard mentioned that “risk of asset price bubbles is a huge issue for the FOMC, while low rates, not just QE, would account for any bubble.”
Technical Aspects on the USD/JPY
Traders should bear in mind that as long as the pair holds the 200-hourly SMA support as of (97.79), but mostly the 200-daily SMA (97.55), can sustain its upwards momentum. Emmanuel Ng of OCBC Bank says “that this morning, we initiate a long USD/JPY (spot reference as of 98.36), targeting 100.70 with a stop at 97.15.Tactically, the pair may continue to manifest any USD strength in the wake of this week’s FOMC and with the BOJ still preoccupied with attempting to achieve its multi-year inflation target.”
USD/JPY skyrockets as ISM expands at the fastest pace since 2011 despite the US government shutdown
The USD/JPY moves sharply higher after the ISM released data showed that the US manufacturing, expanded at its fastest pace since the April as of 2011 and – despite – the 16 day US government’s shutdown. The cross was hovering at 98.46 level prior to the data release, but well after the data came out across the board, it spiked to 98.84 (daily high). Briefly, ISM Manufacturing index released at 56.4 versus 55.0 expected and 56.2 the prior one. Finally, Fed’s Bullard mentioned that “risk of asset price bubbles is a huge issue for the FOMC, while low rates, not just QE, would account for any bubble.”
Technical Aspects on the USD/JPY
Traders should bear in mind that as long as the pair holds the 200-hourly SMA support as of (97.79), but mostly the 200-daily SMA (97.55), can sustain its upwards momentum. Emmanuel Ng of OCBC Bank says “that this morning, we initiate a long USD/JPY (spot reference as of 98.36), targeting 100.70 with a stop at 97.15.Tactically, the pair may continue to manifest any USD strength in the wake of this week’s FOMC and with the BOJ still preoccupied with attempting to achieve its multi-year inflation target.”