USDJPY to 6-month Peak amid Higher Risk Sentiment | IFCM UK
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USDJPY to 6-month Peak amid Higher Risk Sentiment - 25.11.2013

Markets were driven by improved risk appetite as Iran sealed a deal with world powers to reduce its nuclear program in order to ease sanctions on Oil imports and other materials. The Japanese Yen was under heavy selling pressure earlier today as traders were willing to risk more, with the USDJPY advancing to new 6-month peak at 101.90. The currency pair maintains firmly its upside development although overbought technical indicators suggest being cautious on higher levels.


USDJPY
USDJPY


Moreover, the Euro against the Yen advanced substantially to a fresh 4-year high at 137.97 as the Japanese currency was getting squeezed. The EURJPY was also underpinned by improving German Ifo Business Climate on Friday. Bullish momentum is strong in the currency pair however contrarian indicators suggest the corrective move may be triggered at any time.


Elsewhere, the EURUSD peaked at 1.3559 early on Monday and reversed. Selling pressure on the common currency was further added by Ardo Hansson, member of the ECB Governing council who said that the central bank stands ready to further reduce borrowing costs, also that deposit rate could drop to negative zone. The EURUSD is now trading at 1.3512 with downside bias prevailing in the immediate term, next support is seen at 1.3485.


Looking ahead, Monday is going to be a quiet day regarding news releases, we are mainly waiting for US Pending Home Sales during US session. Lastly, due to Thanksgiving bank holiday on Thursday, volume of trades could be lower than otherwise during the week.
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