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10 Apr 2013
Forex Flash: USD/JPY potentially tempted to 100 by option barriers - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank believes that cited option barriers at 100.00 may continue to temper the upside momentum for USD/JPY in the near term.
Nevertheless, he adds that buying interest on dips is expected to emerge with the Finance Minister continuing to sprinkle the markets with dovish yen remarks, stating that the yen was undergoing a correction from “excessive” rises. As noted previously, he adds that a further consolidation towards the 98.30 neighborhood cannot be ruled out as the markets pause for a sanity check. Moving to AUD/USD, he comments that overnight, the RBA’s Kent did not express undue discomfort with the AUD’s strength, noting that the economy is coping. He writes, “The pair blipped briefly above 1.0500 in overnight dealings although the pair may pause slightly following the deteriorating April consumer confidence numbers this morning. In the short term, the pair may be expected to trade with a supported tone within a 1.0390-1.0530 band.”
Nevertheless, he adds that buying interest on dips is expected to emerge with the Finance Minister continuing to sprinkle the markets with dovish yen remarks, stating that the yen was undergoing a correction from “excessive” rises. As noted previously, he adds that a further consolidation towards the 98.30 neighborhood cannot be ruled out as the markets pause for a sanity check. Moving to AUD/USD, he comments that overnight, the RBA’s Kent did not express undue discomfort with the AUD’s strength, noting that the economy is coping. He writes, “The pair blipped briefly above 1.0500 in overnight dealings although the pair may pause slightly following the deteriorating April consumer confidence numbers this morning. In the short term, the pair may be expected to trade with a supported tone within a 1.0390-1.0530 band.”