USD/JPY: reverses European gains, risk to the downside remains - FXStreet

Ross J Burland FXStreet

Valeria Bednari k, chief analyst at FXStreet explained that the USD/JPY pair rallied up to 101.83 this Thursday, as Asian equities were sharply higher following the positive lead coming from oil's recovery and Wall Street's gains, with the pair further advancing early in the US session, as the dollar enjoyed some short term demand following better-than-expected economic data.

Key Quotes:

"Nevertheless, the release of poor US housing figures kick started a downward correction that accelerated with US indexes plummeting amid banking woes. Retail sales in Japan unexpectedly fell in August for the first time in three months, contracting by 2.1% when compared to August 2015.

During the upcoming Asian session, the country will release its National and Tokyo inflation figures, expected to have changed little from previous negative readings.

The pair is holding above the 101.00 level, but barely, and the risk remains towards the downside, particularly if Asian equities edge lower."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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