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16 Dec 2014
USD/JPY fending off the bears eying 118 handle
FXStreet (Guatemala) - USD/JPY is trading at 117.84, up 0.10% on the day, having posted a daily high at 118.03 and low at 117.68.
USD/JPY was up on the open of Tokyo while the Nikkei gapped and opened higher on 16800 and reached highs 16888 before starting to drift back.
The Yen was bid in the US on risk aversion. Falling US yields pressured the greenback while modest US loses in the stocks and oil continuing to fall spurred flows into the Yen.
The US dollar did manage to find some support in the surprise industrial production data results that beat expectations by some margin, 1.3% vs 0.7% expected and 0.1% last.
The Abe victory has now been put aside for now as markets turn towards the FOMC coming up this week. While risk aversion continues to pay out, the outlook for the Yen in the near term is buoyed vs what otherwise might have been a good reason to be short of the currency on the basis of the implications of what Abenomics means for Japan and their currency.
USD/JPY was up on the open of Tokyo while the Nikkei gapped and opened higher on 16800 and reached highs 16888 before starting to drift back.
The Yen was bid in the US on risk aversion. Falling US yields pressured the greenback while modest US loses in the stocks and oil continuing to fall spurred flows into the Yen.
The US dollar did manage to find some support in the surprise industrial production data results that beat expectations by some margin, 1.3% vs 0.7% expected and 0.1% last.
The Abe victory has now been put aside for now as markets turn towards the FOMC coming up this week. While risk aversion continues to pay out, the outlook for the Yen in the near term is buoyed vs what otherwise might have been a good reason to be short of the currency on the basis of the implications of what Abenomics means for Japan and their currency.