USD/JPY: Pushes higher as equity markets shine again
Wall Street is in a good mood as we see both the S&P and Dow Jones pressing up to new record highs and dragging the JPY lower in its wake. This sees USD/JPY pushing above the 112.50 marks in what is a measured move as yet - only some 15 ticks or so, up from the highs seen yesterday. As we have noted before, we anticipate some resistance once we get closer to the 113.00 mark, however, it seems traders are ready to fade the move ahead of this.
Looking across the board, the moves look to be led by the cross rates, where EUR/JPY has now pushed above 132.00, taking out the highs from mid-Jul. This has come alongside EUR/USD move which has taken out the 1.1750 level, though stalls ahead of 1.1791 for now - also from Jul. The next key level through here does not show up until the mid 133.00's, having last seen these levels in late April.
GBP/JPY pushed above 149.00, however, it is back under the figure level in line with Cable pulling back under 1.3250. The upturn stalled ahead of its equivalent top at 149.28 in Jul, though the pullback is shallow as yet.
For USD/JPY, the resilient tone suggests that a USD comeback could see us testing better levels again. 113.20-25 is where we topped out in Jul and this will be the target for buyers who have stuck course of the recent USD downturn elsewhere in the market recently....