FXstreet.com (Barcelona) - USD/JPY continues its ascend in the Asian session, accelerating gains after a major breakout of 79.20 resistance, which seems to have take out quite a few stops. Currently the pair trades at 79.30, highest since July 13.
With US treasury yields rising on fading hopes of immediate easing action by the Fed, leveraged players are being squeezed out of long positions in the Yen. Technical view appears supportive of the notion to buy pullback ahead of 78.75 support, with some credible signs that the pair may have put a major low recently.
The Nikkei Stock Average rose over 1.6%, as the weakening yen encouraged investors to buy exporters. "The current dollar/yen level is a big support for local shares, since large manufacturers forecast the dollar to average Y78.95 this fiscal year," said Masayuki Doshida, Rakuten Securities senior market analyst in Japan, quoted by Dow Jones.
With US treasury yields rising on fading hopes of immediate easing action by the Fed, leveraged players are being squeezed out of long positions in the Yen. Technical view appears supportive of the notion to buy pullback ahead of 78.75 support, with some credible signs that the pair may have put a major low recently.
The Nikkei Stock Average rose over 1.6%, as the weakening yen encouraged investors to buy exporters. "The current dollar/yen level is a big support for local shares, since large manufacturers forecast the dollar to average Y78.95 this fiscal year," said Masayuki Doshida, Rakuten Securities senior market analyst in Japan, quoted by Dow Jones.
