{"id":60550,"date":"2014-09-18T02:18:49","date_gmt":"2014-09-18T06:18:49","guid":{"rendered":"http:\/\/countingpips.com\/?p=60550"},"modified":"2014-09-18T07:19:56","modified_gmt":"2014-09-18T11:19:56","slug":"yen-hit-hard-as-dollar-rallies-above-108-00","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/09\/yen-hit-hard-as-dollar-rallies-above-108-00\/","title":{"rendered":"Yen hit hard as dollar rallies above 108.00"},"content":{"rendered":"
September 18, 2014<\/div>
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Article by ForexTime<\/a><\/p>\n

USD\/JPY led the JPY complex higher still in Asia. More hawkish than expected Fed forecasts and higher US yields will likely continue to push USD\/JPY up. From 108.32, it rallied early to 108.69 before easing back to 108.37 on Japanese exporter sales and profit-taking. Japanese importers again bought the dip and, alongside specs, pushed it up more to 108.76 later. Optionality is seen to 110 and above, and with many still seen short topside USD calls. Japanese exporter sales and option defense is eyed on the way up. The Nikkei rally along with option-related bids trailing down were supportive. EUR\/JPY rallied in sympathy from 139.22 to 139.88. EUR\/USD weakness capped it at 139.62 for only a short time. GBP\/JPY rallied more from 176.04 to 176.88 with many now having discounted a no vote to Scottish independence. Risks remain however with the vote likely very close. AUD\/JPY saw some bounce too, up from 96.94 to 97.43 and brushing aside China growth concerns and broad AUD weakness. NZD\/JPY charged up from 87.57 to 88.13 and will likely test higher still.<\/p>\n

EUR\/USD opened in Asia at 1.2866 after the plunge last night as the FX market ignored the unchanged Fed statement, focusing instead on the more hawkish Fed funds projections. EUR\/USD\u2019s fall continued early in Asia with stops sub-1.2850 hit and the pair off to a fresh 12-month low of 1.2834. The market then steadied. A bounce later to 1.2873 was seen later as some shorts covered. With the FOMC expected to end QE next month and begin a tightening cycle in \u201915, barring disappointing US data of course, and given the possibility of more ECB ease, the EUR\/USD will likely remain down. The ECB begins another round of balance sheet expansion today with its first TLTRO installment.<\/p>\n

GBP\/USD remains volatile, having rallied to 1.6358 overnight with many eyeing a Scottish no to independence. It fell back later to 1.6247 in early Asia trading on hawkish Fed projections. Cable has since bounced, trading up to 1.6275 with flows having abated considerably ahead of the referendum. EUR\/GBP steadied between 0.7890-0.7912 ahead of the Scotland vote.<\/p>\n

USD\/CHF saw a fresh high of 0.9433 early in Asia before easing back to 0.9406. Volume was low. EUR\/CHF treaded water between 1.2101-11 and out of focus.<\/p>\n

AUD\/USD opened in Asia at 0.8959 and fell a bit more to 0.8939 before bouncing later to 0.8974. More hawkish Fed projections and concerns over Chinese growth took it down from a high of 0.9113 late Tuesday. Light stops below 0.8950 were tripped on the day to the session low. Leveraged players remain short, and this could limit or at least slow further moves down. Major tech support is not eyed till 0.8660, the low of the year on January 24. Sell-rally strategies remain very much in play.<\/p>

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Article by ForexTime USD\/JPY led the JPY complex higher still in Asia. More hawkish than expected Fed forecasts and higher US yields will likely continue to push USD\/JPY up. From 108.32, it rallied early to 108.69 before easing back to 108.37 on Japanese exporter sales and profit-taking. Japanese importers again bought the dip and, alongside […]<\/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-60550","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/60550","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=60550"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/60550\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=60550"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=60550"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=60550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}