FXstreet.com (Barcelona) - Having fully retraced yesterday’s rally, from 78.74 high to drop as low as 78.24, the recovery seen since mid-European session sent the USD/JPY back to 78.50, obtained on the NY opening.
Political uncertainty in Japan is enabling higher volatility than usual as the parliament discusses the government’s intentions of doubling the consumption tax to 10% by 2015. “While the Japanese fiscal deficit is among the scariest in the world, the last time the Japanese raised the consumption tax (in the late 1990s) the economy went into a tailspin and it has never really recovered”, wrote Forexlive.com analyst Jamie Coleman, pointing to an outperforming JPY when its economy does poorly.
The USD/JPY is trading at 78.42 area at the moment of writing. “The broad range above 77.90 continues to be intact and the intraday outlook is negative below 78.49 minor resistance”, wrote Deltastock.com analyst Stoyan Mihaylov, favoring a reversal above 78.00 towards 78.75 en route to 80.10-60.
Political uncertainty in Japan is enabling higher volatility than usual as the parliament discusses the government’s intentions of doubling the consumption tax to 10% by 2015. “While the Japanese fiscal deficit is among the scariest in the world, the last time the Japanese raised the consumption tax (in the late 1990s) the economy went into a tailspin and it has never really recovered”, wrote Forexlive.com analyst Jamie Coleman, pointing to an outperforming JPY when its economy does poorly.
The USD/JPY is trading at 78.42 area at the moment of writing. “The broad range above 77.90 continues to be intact and the intraday outlook is negative below 78.49 minor resistance”, wrote Deltastock.com analyst Stoyan Mihaylov, favoring a reversal above 78.00 towards 78.75 en route to 80.10-60.
