All about the JPY
City Index October 23, 2012 2:30 PM
<p>As EUR/USD continues to trade 1.3005/85 market attention remains on the Spanish PM Rajoy and a potential request for aid after it was deemed his […]</p>
As EUR/USD continues to trade 1.3005/85 market attention remains on the Spanish PM Rajoy and a potential request for aid after it was deemed his performance in local Spanish elections has given his party support for the austerity measures Spain are undertaking thus making it easier for him to accept a provisional credit line before opening the OMT as next week’s EUR 200 billion redemptions looms.
The JPY has received some attention as USD/JPY briefly touched the 80.00 handle in Tokyo before option related offers and exporters pushed the pair lower helped by comment from the Japanese Finance Minister Jojima who stated that there was no truth to media reports that the Government is asking the BOJ to increase asset purchases by 20 trillion JPY. There is no doubt though that Japanese exporters are being damaged by a stronger JPY as a slowdown in Asia and an island dispute with China pushes the chances of a Japanese recession towards the end of the year closer.
Supports 1.3000-1.2940-1.2890 | Resistance 1.3085-1.3145-1.3210
Supports 79.40-79.00-78.50 | Resistance 80.10-80.60-80.85
Supports 1.5975-1.5910-1.5850 | Resistance 1.6040-1.6060-1.6115
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