{"id":60172,"date":"2014-09-11T07:19:03","date_gmt":"2014-09-11T11:19:03","guid":{"rendered":"http:\/\/countingpips.com\/?p=60172"},"modified":"2014-09-11T07:25:04","modified_gmt":"2014-09-11T11:25:04","slug":"usdjpy-hits-6-year-high-but-rsi-is-overbought","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/09\/usdjpy-hits-6-year-high-but-rsi-is-overbought\/","title":{"rendered":"USD\/JPY Hits 6-year High but RSI is Overbought"},"content":{"rendered":"
September 11, 2014<\/div>
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Article by ForexTime<\/a><\/p>\n

USD\/JPY is trading at the highs of the session and recently hit the 107.15 level.\u00a0 The interest rate differential between the US 10-year and the Japanese JGB hit a high of 100 basis points driving the currency pair higher.\u00a0 The 107.15 print is a new six-year peak. The gain reflect broad yen weakness, seen after BoJ Kuroda\u2019s assurance to PM Abe that the central bank won\u2019t hesitate to take further action should the 2% inflation target become difficult to achieve.<\/p>\n

Central Bank President Kuroda did not mention the yen is a speech Thursday, which was taken as a tacit acceptance of the currency\u2019s weakening path. He has said last month that FX moves have been consistent with fundamentals. Recent data showed that Q2 GDP data showing a 7.1% drop, largely due to the three-percentage-point rise in the sales tax to 8%, which was implemented in April. Markets continued to view the BoJ has being headed for further monetary stimulus.<\/p>\n

Yields in the U.S. backed up another notch at the long-end and remained elevated into supply in the 10-year. The bond market remained very wary of any alteration of FOMC policy guidance next week that could be construed as bringing forward a rate hike.<\/p>\n

Target resistance on the USD\/JPY is now seen near the 2008 highs at 10.50.\u00a0 Support on the currency pair is seen near the 10-day moving average at 105.50.\u00a0 Momentum on the currency pair is positive with the MACD (moving average convergence divergence) printing at its highest level seen in the past 12-months.\u00a0 The trajectory of the MACD points to a higher exchange rate.\u00a0 The RSI (relative strength index)moved higher with price action reflecting accelerating positive momentum while printing a reading of 79, which is well above the overbought trigger level of 70 and could foreshadow a correction.<\/p>\n

\"jpy-091114\"<\/a><\/p>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>

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Article by ForexTime USD\/JPY is trading at the highs of the session and recently hit the 107.15 level.\u00a0 The interest rate differential between the US 10-year and the Japanese JGB hit a high of 100 basis points driving the currency pair higher.\u00a0 The 107.15 print is a new six-year peak. The gain reflect broad yen […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-60172","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/60172","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=60172"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/60172\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=60172"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=60172"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=60172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}