Yen’s behavior leads to interesting thoughts

USD / JPY can test the growth potential if the data in the US proves to be strong, as the market focus shifted to the economy after concerns about North Korea’s missile testing, says Ryuta Takeetami, customer manager at Treasury’s Resona Bank. Uncertainties about the US sovereign debt ceiling limit the pair’s growth near the August highs. The strong rebound of USD / JPY after yesterday’s recession suggests that international markets are not too much oriented toward the Korean problem and are not too worried about the deteriorating situation in the region. The price behavior on Tuesday shows that there are many who want to buy USD / JPY around 108, making this level a sustainable support.
PCE, employment data may be a catalyst for the USD / JPY increase, but the pair is likely to stop at 111, where markets have tested highs several times this month. USD / JPY is likely to remain in the range of 109-111, while current levels are considered average. USD / JPY rose 0.4% to 110.17 today, a two-week high. Now the quotations are 109.95. The pair fell to 108.27 on Tuesday, the lowest level since April 17.

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