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COZfx: USD/JPY weekly outlook

Discussion in 'Analisa Fundamental' started by harryer, Nov 4, 2013.

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  1. harryer

    harryer Member

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    COZforex: The dollar rise to 2 weeks highs against the yen on Friday after unexpectedly strong US manufacturing data bolstered expectations that the Federal Reserve may scale back stimulus measures sooner than expected.

    USD/JPY ended Friday’s session at 98.70, 0.34% higher for the day, after falling as low as 97.80 earlier. The pair ended the week 1.09% higher. COZFX strategist Nigel Boynton said, USD/JPY is predicted to find support at 97.61, and a drop through could take it to the next support line of 97.35. Meanwhile, the pair is predicted to find its first resistance at 98.32, and a rise through could take it to the next resistance line of 98.78.

    The dollar gained ground after the Institute of Supply Management said its manufacturing purchasing managers’ index rise to 56.4 in October, the highest since April 2011, from 56.2 in September. Economists had expected the index to tick down to 55.0.

    The Fed left its USD85 billion-a-month asset purchase program in place following its monthly meeting on Wednesday. The bank gave no clear indication whether it would start scaling back stimulus at the December meeting or continue it into the start of 2014.

    "The housing sector has slowed somewhat in recent months," the Fed statement said. However, Fed officials stuck to the view that the economy is expanding "at a moderate pace" and said downside risks were diminishing.

    The Bank of Japan made no changes to its stimulus program on Thursday and reiterated that inflation will almost reach the bank’s 2% target by 2015.


    (COZ forex UK)
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