Forex: USD/JPY below 93.50 on more BoJ-related jawboning

The Japanese Yen has been paring its losses in the last few hours of trading, just as shadow FinMin in Japan, Mr. Maehara, crossed the wires to say that BoJ candidate with extreme reflationary policy profile is not desirable. Such headline would make the leading candidate, Mr. Iwata (most dovish) not the ideal pick, in theory.

The USD/JPY is presently just below 93.50 as the constant jawboning from policy-makers continue. One can not help but notice that until the new BoJ chief is officially announced, all Yen crosses will remain trading choppy on a headline-to-headline basis. If pressure intensifies, the next key support is found at 93.15, swing low from Feb 20. On the upside, watch 94.00 round number.

Feb 21, 2013

Forex Flash: Little the RBNZ can do to smooth the Kiwi's rise - BNZ

Following the verbal threat of an RBNZ intervention, according to Mike Jones, currency analyst at Bank of New Zealand, "there is very little the bank can do to slow the NZD’s ascent, other than trying to 'smooth the peaks'. Wheeler also shot down most of the quick fixes currently being propounded by political and media types.

USD on fire, but is the rally justifiable?

It was all about the US Dollar on Wednesday, displaying an outstanding performance as speculators got busy pricing out increased chances of a sooner-than-expected end/tapering from the Fed's quantitative easing program.