03 Sep 2014 02:34GMT
USD/JPY - ..... The greenback continued its recent winning streak and strengthened to a fresh 8-month high of 105.27 ahead of Tokyo open on renewed broad-based selling in the yen following Tuesday's rally on market speculation Japanese PM Abe will appoint Yasuhisa Shiozaki, deputy policy chief of the LPD who may shift pension funds toward riskier assets.
Current firmness due to 130 points gain in the N225 index suggests buying dlr on dips for a re-test of 2014 peak at 105.45 is recommended. However, sharp gain is unlikely to be seen as market participants are awaiting release of a slew of U.S. data, then the U.S. Beige book later today (18:00GMT) to get a snapshot of economic health in each of the central bank's districts for hints of Fed to ending its extraordinary monetary policy and normalizing interest rate.
Bids are noted at 105.00-104.80 region, with stops below there. On the upside, offers are placed at 105.30-40 and then 105.50 with stops touted above there.
Last night the greenback rallied to a fresh 8-month high of 105.21 in NY morning after the release of much stronger-than-expected U.S. ISM manufacturing PMI which came in better-than-expected at 59.0 versus economists' forecast of 56.8. However, profit-taking offers capped dlr's upside somewhat n more offers are tipped at 105.40/45. On the downside, bids are located at 105.00, 104.85-80 and more at 104.70.
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