Chance for USD/GBP/AUD Upside as JPY Strength Limited
Chance for USD/GBP/AUD Upside as JPY Strength Limited
Japanese
firms slashed spending on plant and equipment by the most in a decade in
the second quarter, the government said on Tuesday. As a result, the
strength of the Yen was limited while the USD/JPY staged a flat
performance and consolidated around 105.70.To get more news about WikiFX, you can visit wikifx official website.
“Abenomics” is much more likely to see an end ahead of the news that
Abe suddenly resigned his post, which put a premium on the Yen at once
but later revealed to be unrealistic for markets. As the core of
Abenomics, the Yens depreciation pushes domestic prices up and stimulate
the production of companies.
However, Japan's second-quarter
Capex falls most in decade, as reported on Tuesday. In addition, the
strength of JPY will be limited considering other challenges ahead of
Japan such as shrinking workforces and the indefinite postponement of
Olympic Games.
In terms of USD/JPY, the rate is expected to see a further growth
once finding the stability above the level of 104.00 in view of the
strong support ever achieved around the level.
In terms of
EUR/JPY, the rate is now stay in the ascending channel but may hit the
resistance zone of 129.0-130.0 in future tradings if the support is
continuously gained at the lower band of 125.0.
The exchange rate
of AUD/JPY shows a more complex picture. Its short-term uptrend is
expected to suffer a setback as it is currently approaching the
resistance level of 78.60. While in the medium term, gains will be
extended in future tradings if it stays constructive below the 76.60
level.
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